Fig. 4
From: Effects of balance transfer offers on consumer short-term finance: evidence from credit card data
Group (B): monthly effect (PD = 12 months). (a) See the note of Fig. 3. (b) The path of ΔCCC balance is smoother, which makes sense with the longer PD. The spending effect is more statistically significant. β 0 of spending is predicted to go back to 0. The coefficients of ΔPB balance are negative and significantly decrease for FFL offer. All coefficients are positive and tend to increase significantly for the PR offer. This result is the opposite of the coefficient trend for ΔCCC balance and ΔEFX balance with the increase in PR. Therefore, with longer PD, consumers would borrow less no matter FFL or PR increases, and the effect of FFL is not as significant as it is in the baseline offer because they have longer time to arrange the payment. During the PD, the customers tend to purchase more even with a PR increase. Most of the customers pay off the debt at the end of the promotion. More customers respond to PR offer and take full advantage of the offer on extended PD, especially for PB account holders