Fig. 5
From: Effects of balance transfer offers on consumer short-term finance: evidence from credit card data
Group (C): monthly effect (PD = 6 months and BT fee = $0). (a) See the note of Fig. 3. (b) Through these figures, the trends of effect changes for five dependent variables by BT offer in 8 months are represented. Compared to the baseline offer with higher maximized BT fee, the signs of ΔCCC balance coefficients and ΔPB balance coefficients are opposite with the signs of ΔEFX balance coefficients. The coefficients of ΔEFX balance increase from negative to positive for FFL and decrease from positive to negative for PR (although not significantly). Therefore, they borrow less in the bank with the increase in FFL. However, they tend to borrow more in other banks. The PR change does not make an impact on the consumers’ response in the examined bank, but does decrease aggregate their debt, or consumption. The PR increase is a negative sign to consumers and leads them to borrow less from all banks