Arna Olafsson's Research to be Published in the Journal of Political Economy
Center for Big Data in Finance (BIGFI) is pleased to announce that a research paper by center member Arna Olafsson, focusing on the financial conditions and decision-making abilities of high-cost loan borrowers, has been selected for publication in the esteemed Journal of Political Economy.
Olafsson's research breaks new ground by examining the reasons low-income households turn to high-cost loans, categorizing the motivations as either "misfortune" or "mistake". Using data from Iceland, the paper demonstrates the significant role of both these factors in this economic behavior. The publication in the Journal of Political Economy underscores the importance and impact of Olafsson's research in the field of economics and finance.
This research holds implications for policy-making, suggesting a need for consumer protection measures that prevent financial mistakes but maintain access to necessary financial products. Center for Big Data in Finance (BIGFI) celebrates this accomplishment and looks forward to the continued contributions of Olafsson to the field.