Does studying economics in college influence loan decisions later in life? |
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Authors: | William Bosshardt William B Walstad |
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Institution: | 1. Department of Economics, Florida Atlantic University, Boca Raton, FL, USA;2. Department of Economics, University of Nebraska-Lincoln, Lincoln, NE, USA |
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Abstract: | The authors investigate the relationship between undergraduate economics coursework or majoring in economics and the debt behavior of the college graduates. The data come from the Baccalaureate and Beyond (B&B) longitudinal survey of the National Center for Education Statistics. College graduates who took courses in undergraduate economics or majored in the subject appear less willing to assume debt through auto loans or federal student loans. If they do assume debt, the amount of the monthly payment (auto loans) or the total amount owed (student loans) is less for college graduates with economics coursework or an economics major compared with other students. The findings are robust for college graduates one year and four years after graduation. |
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Keywords: | auto loans borrowing or debt behavior economics courses economics majors student loans |
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