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Michaela Pagel
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Publisher: Journals Gateway
The Review of Economics and Statistics 1–26.
Published: 05 March 2025
Abstract
View articletitled, The Ostrich in Us: Selective Attention to Personal Finances
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for article titled, The Ostrich in Us: Selective Attention to Personal Finances
We analyze attention to personal finances using a high-frequency panel of bank data, including information on logins. We document a number of robust patterns. Relative to their personal histories, individuals pay more attention when holding more cash and liquidity and when receiving income. In contrast, attention decreases discretely as bank account balances go from positive to negative and then decreases further as overdraft debt increases. We conclude that Ostrich effects in a personal finance context, i.e., the avoidance of obtaining information on everyday personal finances, is a widespread phenomenon and explore a number of explanations for our findings.
Includes: Supplementary data