UC Irvine

This dissertation undertakes a comprehensive investigation into consumer economics within the United States, spanning diverse realms, from the dairy aisle and the domain of payday loans. The first chapter delves into the impact of migration on consumer behavior, specifically focusing on dairy and plant-based milk consumption. Utilizing Nielsen consumer panel data, the research discerns a trend wherein individuals who undergo migration exhibit an increase in expenditures on dairy milk, accompanied by a corresponding decrease in expenditures on plant-based milk. Notably, the destination of migration elucidates approximately half of the variations observed in dairy milk expenditures, whereas it only accounts for seventeen percent of the variations in plant-based milk expenditures. These findings suggest a substantial convergence in dairy milk expenditures towards the average level prevalent in the destination state. The second chapter transitions from tangible commodities to financial products, specifically examining extended payment plans associated with payday loans and their implications for financial health. Leveraging the comprehensive coverage offered by Clarity payday loan data, the study illuminates the positive impact of these extended payment plans on various facets of borrowers’ financial well-being. This impact is evident in metrics such as the amount past due, original charge-off, delinquency rate, and the rate of charge-off or debt-in-collections. The third chapter extends the inquiry by investigating the heterogeneous treatment effects of extended payment plans over time and across individuals with varying income volatility, as defined by the income coefficient of variation. The research reveals that the treatment effect exhibits variation across different years without a discernible pattern. Individuals with income coefficients of variation ranging from the first quartile to the median level appear to derive the most benefit from these plans. However, the treatment effect is either small or non-existent for individuals with income coefficients of variation beyond the third quartile. In summary, this dissertation contributes to the understanding of consumer economics by analyzing data pertaining to both tangible and intangible products, ranging from milk consumption to payday loan borrowing in the United States. The findings not only shed light on dietary-related policies, especially the policy for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), but also hold relevance for policy considerations in the realm of financial products.