R: Expenditure and Default Data

CreditCard {AER} | R Documentation

## Expenditure and Default Data

### Description

Cross-section data on the credit history for a sample of applicants for a type of credit card.

### Usage

    data("CreditCard")

### Format

A data frame containing 1,319 observations on 12 variables.

card

  Factor. Was the application for a credit card accepted?

reports

  Number of major derogatory reports.

age

  Age in years plus twelfths of a year.

income

  Yearly income (in USD 10,000).

share

  Ratio of monthly credit card expenditure to yearly income.

expenditure

  Average monthly credit card expenditure.

owner

  Factor. Does the individual own their home?

selfemp

  Factor. Is the individual self-employed?

dependents

  Number of dependents.

months

  Months living at current address.

majorcards

  Number of major credit cards held.

active

  Number of active credit accounts.

### Details

According to Greene (2003, p. 952) `dependents` equals `1 + number of dependents`, our calculations suggest that it equals `number of dependents`.

Greene (2003) provides this data set twice in Table F21.4 and F9.1, respectively. Table F9.1 has just the observations, rounded to two digits. Here, we give the F21.4 version, see the examples for the F9.1 version. Note that `age` has some suspiciously low values (below one year) for some applicants. One of these differs between the F9.1 and F21.4 version.

### Source

Online complements to Greene (2003). Table F21.4.

http://pages.stern.nyu.edu/~wgreene/Text/tables/tablelist5.htm

### References

Greene, W.H. (2003). Econometric Analysis, 5th edition. Upper Saddle River, NJ: Prentice Hall.

### See Also

`Greene2003`

### Examples

    data("CreditCard")

    ## Greene (2003)
    ## extract data set F9.1
    ccard <- CreditCard[1:100,]
    ccard$income <- round(ccard$income, digits = 2)
    ccard$expenditure <- round(ccard$expenditure, digits = 2)
    ccard$age <- round(ccard$age + .01)
    ## suspicious:
    CreditCard$age[CreditCard$age < 1]
    ## the first of these is also in TableF9.1 with 36 instead of 0.5:
    ccard$age[79] <- 36

    ## Example 11.1
    ccard <- ccard[order(ccard$income),]
    ccard0 <- subset(ccard, expenditure > 0)
    cc_ols <- lm(expenditure ~ age + owner + income + I(income^2), data = ccard0)

    ## Figure 11.1
    plot(residuals(cc_ols) ~ income, data = ccard0, pch = 19)

    ## Table 11.1
    mean(ccard$age)
    prop.table(table(ccard$owner))
    mean(ccard$income)

    summary(cc_ols)
    sqrt(diag(vcovHC(cc_ols, type = "HC0")))
    sqrt(diag(vcovHC(cc_ols, type = "HC2")))
    sqrt(diag(vcovHC(cc_ols, type = "HC1")))

    bptest(cc_ols, ~ (age + income + I(income^2) + owner)^2 + I(age^2) + I(income^4), data = ccard0)
    gqtest(cc_ols)
    bptest(cc_ols, ~ income + I(income^2), data = ccard0, studentize = FALSE)
    bptest(cc_ols, ~ income + I(income^2), data = ccard0)

    ## More examples can be found in:
    ## help("Greene2003")

[Package AER version 1.2-5 Index]