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A Psychological Account of Co-Holding: Why Some Choose to Simultaneously Borrow and Save

Last registered on May 13, 2020
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Pre-Trial

Trial Information

General Information

Title
The Co-Holding Puzzle: Why Hold Onto High-Interest Credit When You Have the Savings?
RCT ID
AEARCTR-0005751
Initial registration date
April 22, 2020

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
April 24, 2020, 3:06 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
May 13, 2020, 10:58 PM EDT

Last updated is the most recent time when changes to the trial's registration were published.

Locations

Country
Australia
Region

Primary Investigator

Name
Jessica Min
Affiliation
Princeton
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Other Primary Investigator(s)

PI Name
Rafael Batista
PI Affiliation
University of Chicago
Contact Investigator
PI Name
Abigail Sussman
PI Affiliation
University of Chicago
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PI Name
Neale Mahoney
PI Affiliation
University of Chicago
Contact Investigator

Additional Trial Information

Status
On going
Start date
2019-02-01
End date
2021-01-31
Keywords
Finance & Microfinance
Additional Keywords
behavioral, consumer finance
JEL code(s)
Secondary IDs
Abstract
We seek to understand why individuals “co-hold” high levels of high-interest credit card debt and low-yielding liquid savings, by running a randomized controlled trial (RCT).
External Link(s)

Registration Citation

Citation
Batista, Rafael et al. 2020. "The Co-Holding Puzzle: Why Hold Onto High-Interest Credit When You Have the Savings?." AEA RCT Registry. May 13. https://doi.org/10.1257/rct.5751-1.1
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2020-02-01
Intervention End Date
2020-03-31

Primary Outcomes

Primary Outcomes (end points)
Credit card balance or indicator for repaid more than the pre-intervention 3-month average. (Determination made after power calculations.)
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We run a randomized controlled trial, messaging people who have revolving credit card debt incurring interest and who have savings over a extended time period. We randomize individuals into one control and two treatment groups. The control group receive no messaging. The first treatment group is shown a message to inform them about their available funds. The second treatment group is shown a message with informs them of their available funds, as well as making salient the cost of co-holding.
Experimental Design Details
Randomization Method
Randomization by app
Randomization Unit
Individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
0
Sample size: planned number of observations
125,328 individuals
Sample size (or number of clusters) by treatment arms
41,776 in control, 41,776 in treatment 1, 41,776 in treatment 2.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
The University of Chicago Social and Behavioral Sciences Institutional Review Board
IRB Approval Date
2019-08-30
IRB Approval Number
IRB19-1353
Analysis Plan

Analysis Plan Documents

2020.05.13_Co-holding_PAP.docx

MD5: 842139d9c54bb5d50a541e5a44ddd6f3

SHA1: 28282b5e3ebe471d9843fc332356dd5e3bdadff1

Uploaded At: May 13, 2020

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials