Research Repository

See what's under the surface


Why are some households so poorly insured? (2018)
Journal Article
Gathergood, J., & Wylie, D. (2018). Why are some households so poorly insured?. Journal of Economic Behavior and Organization, 156, 1-12. doi:10.1016/j.jebo.2018.08.006

We explore empirically how households insure themselves against consumption volatility. We asked households how they would fund an unexpected emergency consumption expense equivalent to one month’s income. Answers reveal a range of consumption insura... Read More

How do individuals repay their debt?: the balance-matching heuristic (2018)
Journal Article
Gathergood, J., Mahoney, N., Stewart, N., & Weber, J. (in press). How do individuals repay their debt?: the balance-matching heuristic. American Economic Review, ISSN 0002-8282

We study how individuals repay their debt using linked data on multiple credit cards. Repayments are not allocated to the higher interest rate card, which would minimize the cost of borrowing. Moreover, the degree of misallocation is invariant to the... Read More

How do payday loans affect borrowers?: evidence from the UK market (2018)
Journal Article
Gathergood, J., Guttman-Kenney, B., & Hunt, S. (2018). How do payday loans affect borrowers?: evidence from the UK market. Review of Financial Studies, doi:10.1093/rfs/hhy090

Payday loans are controversial high cost, short-term lending products, banned in many US states. But debates surrounding their benefits to consumers continue. We analyse the effects of payday loans on consumers using a unique dataset including 99% of... Read More

The red, the black, and the plastic: paying down credit card debt for hotels not sofas (2018)
Journal Article
Quispe-Torreblanca, E., Stewart, N., Gathergood, J., & Loewenstein, G. (in press). The red, the black, and the plastic: paying down credit card debt for hotels not sofas. Management Science,

Using transaction data from a sample of 1.8 million credit card accounts, we provide the first field test of a major prediction of Prelec and Loewenstein’s (1998) theory of mental accounting: that consumers will pay off expenditure on transient form... Read More

Financial literacy: a barrier to home ownership for the young? (2017)
Journal Article
Gathergood, J., & Weber, J. (in press). Financial literacy: a barrier to home ownership for the young?. Journal of Urban Economics, 99, doi:10.1016/j.jue.2017.02.001. ISSN 0094-1190

The decision to buy a home is one of the most important choices faced by a household. Most young households who purchase a home do so using a mortgage. But mortgages are complex financial instruments and this complexity may be a barrier to less sophi... Read More

Financial literacy, present bias and alternative mortgage products (2017)
Journal Article
Gathergood, J., & Weber, J. (2017). Financial literacy, present bias and alternative mortgage products. Journal of Banking and Finance, 78, (58-83). doi:10.1016/j.jbankfin.2017.01.022. ISSN 0378-4266

Choosing a mortgage is one of the most important financial decisions made by a household. Financial innovation has given rise to more complex mortgage products with back-loaded payments, known as ‘Alternative Mortgage Products’ (AMPs), or ‘Interest-O... Read More

Do wealth shocks affect health? New evidence from the housing boom (2016)
Journal Article
Fichera, E., & Gathergood, J. (in press). Do wealth shocks affect health? New evidence from the housing boom. Health Economics, 25(S2), doi:10.1002/hec.3431. ISSN 1057-9230

We exploit wealth shocks arising from housing wealth gains to examine the relationship between wealth and health. In UK household panel data positive housing wealth gains lower the likelihood of home owners exhibiting a range of non-chronic health co... Read More

Credit counseling: a substitute for consumer financial literacy? (2015)
Journal Article
Disney, R., Gathergood, J., & Weber, J. (2015). Credit counseling: a substitute for consumer financial literacy?. Journal of Pension Economics and Finance, 14(4), doi:10.1017/S1474747215000219. ISSN 1474-7472

Is financial literacy a substitute or complement for financial advice? We analyze the decision by consumers to seek financial advice in the form of credit counseling. Credit counseling is an important component of the consumer credit sector for consu... Read More

Self-control, financial literacy & the co-holding puzzle (2014)
Journal Article
Gathergood, J., & Weber, J. (2014). Self-control, financial literacy & the co-holding puzzle. Journal of Economic Behavior and Organization, 107, doi:10.1016/j.jebo.2014.04.018. ISSN 0167-2681

We use UK survey data to analyze the puzzling co-existence of high cost revolving consumer credit alongside low yield liquid savings in household balance sheets, which we name the ‘co-holding puzzle'. Approximately 12% of households in our sample co-... Read More