Eckel, Catherine C.
[Verfasser:in]
;
Johnson, Cathleen A.
[Sonstige Person, Familie und Körperschaft];
Montmarquette, Claude
[Sonstige Person, Familie und Körperschaft];
Rojas, Christian
[Sonstige Person, Familie und Körperschaft]
Debt Aversion and the Demand for Loans for Post-Secondary Education
Anmerkungen:
In: Public Finance Review, Vol. 35, No. 2, pp. 233-262, March 2007
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 1, 2007 erstellt
Beschreibung:
The authors report the results of an experiment designed to measure the impact of different forms of subsidies on the demand for post-secondary education financing among a sample of adults ages 18-55 in Canada. The experiment presents subjects with a series of choices involving trade-offs between cash payments and grants or loans earmarked for full- or part-time education. In addition, the experiment includes experimental measures of time and risk preferences, and an extensive survey of experience and attitudes. This article focuses on the role of a person's attitudes toward debt (debt aversion) and experience with debt (debt use) in the decision to take up subsidized loans for post-secondary education. Using survey measures, the authors find no evidence that debt aversion is an important barrier to investment in post-secondary education. In addition, subjects with experience carrying and managing debt are more willing than others to take on additional debt to finance post-secondary education