Hanna, 1992

Optimal Credit Use With Uncertain Income” (Financial Counseling and Planning, Volume 3, 1992)

By: XIAOJING JESSIE FAN, YU-CHUN REGINA CHANG, AND SHERMAN HANNA

CONTACT: SHERMAN HANNA (E-MAIL: hanna.1@osu.edu)

POSTAL: 1787 Neil Ave., Columbus, OH 43210

PHONE: (614) 292-4584 FAX: (614) 292-7536

A two period analysis of optimal credit use for consumers facing uncertain income is developed to give insight into
factors related to rational credit use. Extension of the model to more realistic situations are described.

KEY WORDS: credit, bankruptcy, risk