The Co-Holding Puzzle: New Evidence from Transaction-Level Data
(2024)
Journal Article
Gathergood, J., & Olafsson, A. (2024). The Co-Holding Puzzle: New Evidence from Transaction-Level Data. Review of Financial Studies, https://doi.org/10.1093/rfs/hhae016
Why do individuals pay debt interest when they could use their savings to pay down the debt? We explore why individuals "co-hold" debt and savings using detailed and highly disaggregated daily-level data on household finances. We find that co-holding... Read More about The Co-Holding Puzzle: New Evidence from Transaction-Level Data.