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NATIONAL BUREAU OF ECONOMIC RESEARCH
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How Do Individuals Repay Their Debt? The Balance-Matching Heuristic

John Gathergood, Neale Mahoney, Neil Stewart, Joerg Weber

NBER Working Paper No. 24161
Issued in December 2017, Revised in August 2018

---- Acknowledgments ----

We thank Joanne Hsu, Ben Keys, David Laibson, Brigitte Madrian, Devin Pope, Hiro Sakaguchi, Abby Sussman, Dick Thaler and seminar participants at Berkeley Haas, CEPR European Conference on Household Finance, Chicago Booth, FDIC, St Gallen, Luxembourg School of Finance, NBER Household Finance, Nottingham, Oslo Applied Microeconomics Conference, and the Philadelphia Fed for helpful comments. Hanbin Yang provided excellent research assistance. This work was supported by Economic and Social Research Council grants ES/K002201/1, ES/N018192/1, ES/P008976/1, Leverhulme grant RP2012-V-022, and by the Becker Friedman Institute at the University of Chicago. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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