As part of The Saint Paul Foundation’s Credit Card Project, three credit card issuers conducted randomized tests of whether offering online credit card education to credit cardholders is effective in changing behavior. The targeted populations were either new cardholders or cardholders...

This paper examines two qualitative rules of thumb, frequently invoked in discussions of bank regulatory policy. The first, that equity holders prefer more risk to less, derives from a result in option pricing theory, that an option's value increases monotonically with the riskiness of the...

Numerous studies have documented the failure of consumption-based pricing models to explain observed patterns in stock and bond returns. This failure has sometimes been attributed to frictions, transaction costs or durability. If such frictions are important, they should primarily affect the...