Emel Filiz-Ozbay

Department of Economics
University of Maryland
3114 Tydings Hall
College Park, MD 20742

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Institutional Affiliation: University of Maryland

NBER Working Papers and Publications

July 2018Behavioral Effects of Student Loan Repayment Plan Options on Borrowers’ Career Decisions: Theory and Experimental Evidence
with Katharine G. Abraham, Erkut Y. Ozbay, Lesley J. Turner: w24804
We study the effects of available student loan repayment plans on borrowers’ career choices. By removing the risk of loan default, income driven repayment (IDR) plans make higher-paying but riskier jobs more attractive to those with moderate skill levels. We present experimental evidence that student loan recipients consider the repayment plans offered to them as well as the plans available to other borrowers as a reference in their evaluations of loans and careers. Emotions such as regret over a choice that turns out to be suboptimal ex post and relief at being unburdened from having to make a choice that could turn out badly play significant roles in borrowers’ career choices. Compared to giving borrowers a choice between a standard loan repayment plan that requires a fixed amount to be ...
April 2018Framing Effects, Earnings Expectations, and the Design of Student Loan Repayment Schemes
with Katharine G. Abraham, Erkut Y. Ozbay, Lesley J. Turner: w24484
Income-driven student loan repayment (IDR) plans provide protection against unaffordable loan payments and default by linking loan payments to borrowers’ earnings. Despite the advantages IDR would offer to many borrowers, take-up remains low. We investigate how take-up is affected by the framing of IDR through a survey of University of Maryland undergraduates. When the insurance aspects of IDR are emphasized, students are significantly more likely to participate, while participation is significantly lower when costs are emphasized. IDR framing interacts with expected labor market outcomes. Emphasizing the insurance aspects of IDR has larger effects on students who anticipate a higher probability of not being employed and/or low earnings at graduation. In contrast, when costs are emphasized...

Published: Katharine G. Abraham & Emel Filiz-Ozbay & Erkut Y. Ozbay & Lesley J. Turner, 2020. "Framing effects, earnings expectations, and the design of student loan repayment schemes," Journal of Public Economics, vol 183. citation courtesy of

June 2013Do Lottery Payments Induce Savings Behavior: Evidence from the Lab
with Jonathan Guryan, Kyle Hyndman, Melissa Schettini Kearney, Erkut Y. Ozbay: w19130
This paper presents the results of a laboratory experiment designed to investigate whether the option of a Prize Linked Savings (PLS) product alters the likelihood that subjects choose to delay payment. By comparing PLS and standard savings products in a controlled way, we find strong evidence that a PLS payment option leads to greater rates of payment deferral than does a straightforward interest payment option of the same expected value. The appeal of the PLS option is strongest among men, self-reported lottery players, and subjects with low bank account balances. We use the results of our experiment to structurally estimate the parameters of the decision problem governing time preference, risk aversion, and probability weighting. We employ the parameter estimates in a series of policy s...

Published: Journal of Public Economics Volume 126, June 2015, Pages 1–24 Cover image Do lottery payments induce savings behavior? Evidence from the lab ☆ Emel Filiz-Ozbaya, Jonathan Guryanb, c, , , Kyle Hyndmand, Melissa Kearneya, c, Erkut Y. Ozbaya citation courtesy of

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