Buy now, pay later credit: User characteristics and effects on spending patterns
Di Maggio, Williams and Katz, NBER Working Paper 30508, 2022. Panel of buy now, pay later users built from transaction-level data; access increases total spending and the retail share of spending, with magnitudes too large for standard intertemporal and static substitution effects; holds with and without inferred liquidity constraints; authors read it as a liquidity flypaper effect.
Di Maggio, Williams and Katz, NBER Working Paper 30508, 2022. Panel of buy now, pay later users built from transaction-level data; access increases total spending and the retail share of spending, with magnitudes too large for standard intertemporal and static substitution effects; holds with and without inferred liquidity constraints; authors read it as a liquidity flypaper effect.
Written from the abstract (NBER working paper record).
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NBER Working Paper 30508. doi:10.3386/w30508 https://doi.org/10.3386/w30508