Construct · 1 fields · 1 citations

exponential growth bias: a standalone construct

One name. One construct. A landmark on the map.

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Household finance

the tendency to underestimate compound growth by treating it as linear, which distorts saving and borrowing choices.

In household finance, exponential growth bias refers to the tendency to underestimate compound growth by treating it as linear, which distorts saving and borrowing choices. This meaning comes from Stango (2009) in The Journal of Finance.[1]

Unit
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Nearby constructs

bias6 fields · 8 citationsjingle · one name, six constructs compound3 fields · 3 citationsjingle · one word, three constructs growth4 fields · 4 citationsjingle · one word, four constructs

References

Stango, V., & Zinman, J. (2009). Exponential Growth Bias and Household Finance. The Journal of Finance, 64(6), 2807-2849. https://doi.org/10.1111/j.1540-6261.2009.01518.x

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