Modeling Credit Card Borrowing: A Comparison of Type I and Type II Tobit Approaches.

This study focuses on credit cards as a borrowing medium using 1998 Survey of Consumer Finance data. The type II Tobit approach used here overcomes a shortcoming of the conventional type I Tobit model, which restricts the coefficients of the binary borrowing decision (the first step) and balance lev...

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Publicado en:Southern Economic Journal Vol. 70; no. 1; pp. 128 - 144
Autores principales: Min, Insik, Kim, Jong-Ho
Formato: Artículo
Publicado: Southern Economic Association July 2003
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Modeling Credit Card Borrowing: A Comparison of Type I and Type II Tobit Approaches.
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          Min, Insik
          Kim, Jong-Ho
      su:
        Consumer credit
        Mathematical models
        Credit cards
        Tobits
      sug:
        subj:
          Consumer credit
          Mathematical models
          Credit cards
          Tobits
      ab: This study focuses on credit cards as a borrowing medium using 1998 Survey of Consumer Finance data. The type II Tobit approach used here overcomes a shortcoming of the conventional type I Tobit model, which restricts the coefficients of the binary borrowing decision (the first step) and balance level decision (the second step) to have the same sign. By separately estimating the first and second steps as reduced-form functions in which the overall effects of supply and demand are incorporated, the type II Tobit procedure yields more consistent results with other studies and quantifies the marginal effect (elasticity) of a particular determinant for practical uses. Reprinted by permission of the publisher.
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    language: English
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