Grohmann, Antonia; Menkhoff, Lukas; Merkle, Christoph; … - In: Journal of Money, Credit and Banking 57 (2025) 5, pp. 1071-1102
This paper examines whether biased income expectations due to overconfidence lead to higher levels of debt taking. We show suggestive evidence for a link between overconfidence and borrowing behavior in a representative survey of German households (German Socio‐Economic Panel–Innovation...