This is because interest rates on the credit card debt are typically much higher than interest rates on savings

Then, if hit with a shock such as job loss during a recession, can always tap into the credit card line again (after having paid some of it off)

www.usatoday.com/story/money/...

And to wrap up a day of very interesting papers, Luisa Cefalà on knowledge hoarding and its implications for technology diffusion in #Burundi 🇧🇮

Next: Jeanne Sorin Le Guevel (from UChicago headed to @ucberkeleyofficial.bsky.social @goldmanschool.bsky.social) on building public infrastructure (roads) on private land in #Uganda 🇺🇬

Next: Oluchi Mbonu (from @harvard.edu headed to World Bank) on market segmentation in the minibus sector in #SouthAfrica 🇿🇦

Next: Javier Feinmann (from @ucberkeleyofficial.bsky.social headed to @pse.bsky.social) on wage payments under the table to formal-sector employees in #Brazil 🇧🇷

Next: Tishara Garg (from MIT headed to @stanford.edu) on industrial policy and coordination failures in #India 🇮🇳

First up: Dev Patel (from @harvard.edu heading to @brown.edu) on environmental beliefs, adaptation to #ClimateChange, and farmer profits in #Bangladesh 🇧🇩

Day 2: bsky.app/profile/sean...

And to close out the conference, @akjain.bsky.social on the use of informal loans to bridge rigid, short-maturity formal loans in #Thailand 🇹🇭