I Will Pay Later: Time Inconsistency, Self-Control, and Loan Delinquency

Speaker：Leo Bao, Senior Lecturer, Monash University

Host：Li Xueheng, Associate Professor, Lingnan College

Time and Date：14:30, May 12, 2026 (Tuesday)

Venue：Room 214, Lingnan Administrative Center

Language：Chinese

Abstract：

Time consistency and self-control are central in achieving long-term economic objectives, yet their role in debt repayment remains understudied. We develop a theoretical framework demonstrating how time inconsistency and limited self-control can lead to unintended loan delinquency. We empirically test the model using a unique dataset of 58,345 fintech loan records. Consistent with the theory, time consistency and self-control measures significantly predict delinquency after controlling for traditional risk factors. These findings suggest that self-control, often overlooked in credit scoring, supplements evaluation of creditworthiness. Our results highlight the potential benefits of incorporating psychological metrics into lending decisions.

Profile:

Dr. Leo Bao is a Senior Lecturer in the Department of Banking and Finance at Monash University. He earned his Ph.D. in Economics from Monash in 2020. His research interests span experimental economics and finance, fintech, and household finance. He has published in leading international journals, including Management Science, PNAS, Nature Human Behaviour, and Games and Economic Behavior.