ID | 192324 |
Title Proper | Buy now, pay later as liquidity insurance |
Other Title Information | Evidence from an early experiment in China |
Language | ENG |
Author | Ji, Yang |
Summary / Abstract (Note) | This study explores the liquidity insurance role of Buy Now, Pay Later (BNPL). As a complementary study to Bian et al. (2023), we provide institutional background and mechanism analysis of BNPL's consumption-boosting effects. Since a significant consumption boosting effect exists even for individuals who did not draw on the BNPL credit line, we argue that BNPL provides liquidity insurance by releasing preexisting precautionary liquidity reserves into consumption. We also explore several robustness checks and heterogeneity analyses. |
`In' analytical Note | China Economic Review Vol. 80, Aug 2023: p.101998 |
Journal Source | China Economic Review 2023-08 80 |
Key Words | China ; Liquidity insurance ; Buy Now, Pay Later (BNPL) |