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Title: Three Essays in Financial Economics
Resulting in 1 citation.
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Sokolowsky, Jan |
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Three Essays in Financial Economics Ph.D. Dissertation, Department of Economics, University of Michigan, 2011 Cohort(s): NLSY79 Publisher: ProQuest Dissertations & Theses (PQDT) Keyword(s): Body Mass Index (BMI); Credit/Credit Constraint; Debt/Borrowing; Obesity Permission to reprint the abstract has not been received from the publisher. In chapter 3 (Obesity, Health Costs, and Credit Risk), we explore the relationship between obesity and household credit risk. Obesity is a known health risk factor and carries a social stigma. Its presence provides a potentially informative signal about individuals' choices and preferences. Using NLSY survey data, we estimate that the loan delinquency rate among the obese is 20% higher than among the non-obese after controlling for numerous observable, prohibited, and -- to lenders -- unobservable credit risk factors. The economic significance of obesity for delinquencies is comparable to that of job displacements. Obesity is particularly informative about future delinquencies among those with low credit risk. In terms of channels, we find that the obesity effect is at least partially mediated through poor health, but is not attributable to individuals' time preferences. |
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Bibliography Citation
Sokolowsky, Jan. Three Essays in Financial Economics. Ph.D. Dissertation, Department of Economics, University of Michigan, 2011. |