Moral Incentives : Experimental Evidence from Repayments of an Islamic Credit Card

This paper studies the role of morality in the decision to repay debts. Using a field experiment with a large Islamic bank in Indonesia, the paper finds that moral appeals strongly increase credit card repayments. In this setting, all of the banks...

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Bibliographic Details
Main Authors:	Bursztyn, Leonardo, Fiorin, Stefano, Gottlieb, Daniel, Kanz, Martin
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	SOCIALLY RESPONSIBLE INVESTMENT DEPOSIT REPAYMENT OF DEBT CREDIT CARDS CUSTOMER ISLAMIC BANK DEFAULTS LATE PAYMENTS INCOME INTEREST LAWS INDUSTRY SAVINGS BEHAVIOR SAVINGS ACCOUNTS INTEREST RATE EXCHANGE CREDIT CARD DEBT STRATEGIES LIQUIDITY SERVICES DEVELOPING COUNTRIES DEBTOR REPAYMENTS POLITICAL ECONOMY BANK INDONESIA PORTFOLIO MORTGAGE LOAN DISCOUNT PRICING BORROWERS PRICE CREDIT CARD LIQUIDITY CONSTRAINT PAYMENTS SAVING INTERNATIONAL BANK CONSUMER CHOICES COMMUNICATIONS DEPENDENT SAVINGS MORTGAGES PENALTIES FORGIVENESS CHECKING ACCOUNT MORAL HAZARD JUDGE RESTRUCTURING GLOBAL EQUITY DEBTS COLLECTIONS INTEREST RATES REPAYMENT BEHAVIOR PAYMENT DEBT MORAL SUASION FINANCIAL PRODUCTS PRIVATE SECTOR DEVELOPMENT CUSTOMER SERVICE LOANS CONSUMER CHOICE REPAYMENT OF DEBTS STUDENT DEBT REAL ESTATE FINANCE GRANTS STUDENT LOANS SAVINGS ACCOUNT BANKS EQUITY LOAN REPAYMENT SOVEREIGN DEBT HUMAN CAPITAL ETHICAL BEHAVIOR COLLECT DEBTS CREDIT CONTROL FUTURE REPUTATION VALUE ISLAMIC BANKS BANK PENALTY CREDIT FAIR TRADE ISLAMIC BANKING REPAYMENT REPAYMENT RATES PROPERTY RESPONSIBLE INVESTMENT SHARES ASSETS GRACE PERIOD DEFAULT INDEBTED LATE PAYMENT PUBLIC DEBT PEER PRESSURE PARTNER BANK INVESTMENT MANAGEMENT USURY LAWS ENFORCEMENT INSURANCE ACCESS TO CREDIT HUMAN RIGHTS TRADE INDEBTED POOR COUNTRIES GOODS INVESTOR FINANCIAL DEVELOPMENT ETHICAL GLOBAL EQUITY FUND STOCKS EQUITY FUND INVESTMENT OUTSTANDING DEBT RISK ETHICAL GLOBAL EQUITY NEW CREDIT SHARE INTERESTED PARTY BANKING REVENUE DEBT REPAYMENT COMMUNICATION DEBT FORGIVENESS CURRENT DEBT CUSTOMERS GAMBLING GOVERNMENTS ARREARS ISLAMIC LAW OUTSOURCING DEBT RELIEF ADVERSE SELECTION CREDIT MARKET REPAYMENT RATE ESTATE INVESTING
Online Access:	http://hdl.handle.net/10986/22842

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http://hdl.handle.net/10986/22842

Moral Incentives : Experimental Evidence from Repayments of an Islamic Credit Card

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