The Influence of Present Bias in Students’ Attitudes Towards Borrowing & Financial Literacy: An Online Survey Experiment

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dc.contributor.advisorMetzger, Laura
dc.contributor.authorParijs, Britt
dc.date.issued2023-07-13
dc.description.abstractAn increasing number of Dutch students engage in over-borrowing practices as they are erroneously optimistic about student loans. Both the attractive terms of student loans as well as cognitive biases in decision-making prevent students from making informed borrowing decisions. Students and the government would benefit financially from reducing over-borrowing practices. By identifying the relevance of the present bias in borrowing decision-making, policymakers can develop policies for making informed borrowing decisions and preventing over-borrowing. In an online survey experiment among Dutch students, I test the effect of an information treatment that counters the present bias on students’ attitudes towards borrowing. This study finds evidence for the influence of the present bias in borrowing decision-making. Students who are informed about the potential consequences of taking out a student loan are less likely to engage in borrowing practices or reduce the amount they initially borrowed. In addition, this thesis provides promising results regarding the relevance of financial literacy in the effect of the information treatment. Further, the effect of the information treatment is not affected by whether students initially borrowed. The findings presented in this thesis contribute to future policy implications regarding the promotion of informed student loan decision-making.
dc.identifier.urihttps://theses.ubn.ru.nl/handle/123456789/14915
dc.language.isoen
dc.thesis.facultyFaculteit der Managementwetenschappen
dc.thesis.specialisationspecialisations::Faculteit der Managementwetenschappen::Master Economics::Economics, Behaviour and Policy
dc.thesis.studyprogrammestudyprogrammes::Faculteit der Managementwetenschappen::Master Economics
dc.thesis.typeMaster
dc.titleThe Influence of Present Bias in Students’ Attitudes Towards Borrowing & Financial Literacy: An Online Survey Experiment

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