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What’s in a Score? Differences in Consumers’ Credit Knowledge Using OLS and Quantile Regressions
Author(s) -
LYONS ANGELA C.,
RACHLIS MITCHELL,
SCHERPF ERIK
Publication year - 2007
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.2007.00079.x
Subject(s) - quantile regression , ordinary least squares , financial literacy , accountability , government (linguistics) , credit score , population , literacy , actuarial science , consumer education , business , quantile , economics , marketing , finance , econometrics , political science , economic growth , sociology , linguistics , philosophy , demography , law
Credit literacy depends, in part, on understanding credit reports and scores. The U.S. Government Accountability Office conducted a study in 2004 to assess consumers’ knowledge of credit reports, credit scores, and the dispute resolution process. This study uses the Government Accountability Office data and estimates a series of ordinary least squares and quantile regressions to identify specific subgroups of the population that could benefit from more targeted consumer policies and financial education. The findings from this research have important implications for consumer educators, financial professionals, and policy makers, especially with respect to national strategies designed to improve consumers’ financial well‐being.