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Source: Mason School of Business, College of William and Mary
Resulting in 1 citation.
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Guthrie, Katherine Sokolowsky, Jan |
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Obesity and Credit Risk Working Paper, Mason School of Business, College of William and Mary, April 2012. Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1786536 Cohort(s): NLSY79 Publisher: Mason School of Business, College of William and Mary Keyword(s): Credit/Credit Constraint; Health/Health Status/SF-12 Scale; Obesity; Weight Permission to reprint the abstract has not been received from the publisher. Obesity 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 percent 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
Guthrie, Katherine and Jan Sokolowsky. "Obesity and Credit Risk." Working Paper, Mason School of Business, College of William and Mary, April 2012. |