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Do Thai Credit Card Consumers Have SelfControl? |
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| รหัสดีโอไอ | |
| Creator | 1. Niwarn Ponpunthin 2. Tatre Jantarakolica |
| Title | Do Thai Credit Card Consumers Have SelfControl? |
| Publisher | Thammasat University |
| Publication Year | 2560 |
| Journal Title | Thammasat Review of Economic and Social Policy |
| Journal Vol. | 3 |
| Journal No. | 2 |
| Page no. | 52-96 |
| Keyword | Credit Card, Self-Control, Utilization Rate, Panel Random-Effects Tobit |
| ISSN | 2465-4167 |
| Abstract | The use of credit cards has been popular in Thailand for several decades. As its popularity increases, policymakers and the public have expressed concerns over the credit card debt. With the panel dataset from the National Credit Bureau, this study is able to explore whether Thai credit card consumers, on average, have self-control in terms of credit card utilization rate. Under the theoretical framework of Life Cycle Hypothesis and the theory of self-control in behavioral economics, the effects of demographic variables, life stages, time of the year and the economic outlook are investigated in this study. From the Panel Random-Effects Tobit regression, the main results indicate that Thai credit card consumers statistically have partial self-control. However, they begin to lose self-control when they (i) have too many credit cards, (ii) fall into the 'illusion of income', (iii) have any additional type(s) of debt, (iv) spend in December and (v) become optimistic towards the economy in the future. To alleviate the loss of self-control in the short run, policymakers are advised to 'build income walls' and lock 'one credit limit per one card issuer' for all card holders. In the long run, self-control can be achieved through an appropriate financial habit formation with the aid of financial technology. |
