Jialan Wang (王嘉兰)
Office: 217-300-4697
Assistant Professor of Finance
University of Illinois at Urbana-Champaign

Research and Teaching Fields
Household Finance
Fintech / Entrepreneurship
Corporate Finance
Behavioral Economics


Ph.D               Financial Economics            Massachusetts Institute of Technology        2010
B.S.                Mathematics                        California Institute of Technology                  2003



[NEW] Bankruptcy and the COVID-19 Crisis (with Jeyul Yang, Ben Iverson, and Ray Kluender)
We document large and persistent declines in bankruptcy rates for both households and small businesses after the onset of the crisis in mid-March, in a surprising reversal of the close historical relationship between bankruptcy and unemployment rates in both the time series and cross section. 

The Economic Consequences of Bankruptcy Reform (with Tal Gross, Ray Kluender, Feng Liu, and Matthew  Notowidigdo)
Revise and Resubmit, American Economic Review
[Paper] [NBER WP] [Video]
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 significantly reduced aggregate bankruptcy filings and reduced the cost of unsecured credit. A one-percentage-point reduction in filing risk conditional on credit score translates to a 70-100 basis-point decline in the offered interest rate for unsecured credit.

When Is It Hard to Make Ends Meet? (with Brian Baugh)
Households are more likely to experience financial shortfalls during predictably longer pay periods, and when they have a greater mismatch between the timing of income and expenditure commitments.

Liquidity Constraints and Budgeting Mistakes: Evidence from Social Security Recipients (with Jesse Leary)
Exploiting quasi-random variation in the timing of benefits disbursed by the Social Security Administration, we find that individuals are 35% more likely to take out payday loans during 35-day compared with 28-day pay periods, and 4% less likely to borrow if they are assigned to receive income on the fourth Wednesday compared to the second Wednesday of the month.

Information Disclosure and Payday Lending in Texas (with Kathleen Burke and Jesse Leary) 
Using a difference-in-differences strategy, we find that payday loan volume declined by 13% after a behaviorally-motivated disclosure was mandated in Texas.


The Marginal Propensity to Consume Over the Business Cycle (with Tal Gross and Matthew Notowidigdo)
American Economic Journal: Macroeconomics, Accepted. [Paper] [NBER WP]
Outstanding Paper Award in Financial Institutions, MFA 2017.
For a sample of over 160,000 bankruptcy filers, the MPC out of liquidity averaged 0.37 between 2004 and 2011, and was 20–30 percent higher between 2007 and 2009 compared to surrounding years.

Minimum Payments and Debt Paydown in Consumer Credit Cards (with Ben Keys)
Journal of Financial Economics, 131(3), 2019. [Paper] [NBER WP]
Using a dataset covering one quarter of the U.S. general-purpose credit card market, we document that 29% of accounts regularly make payments at or near the minimum payment, and at least 9% of all accounts anchor to the minimum payment.

Early Medicaid Expansion Associated With Reduced Payday Borrowing In California (with Heidi Allen, Ashley Swanson, and Tal Gross)
Health Affairs, 2017. [Link]

Liquidity Constraints and Consumer Bankruptcy: Evidence from Tax Rebates (with Tal Gross and Matt Notowidigdo)
Review of Economics and Statistics, 96(3), 2014. [Paper] [Online Appendix]

Superstar Extinction (with Pierre Azoulay and Joshua Graff-Zivin)
Quarterly Journal of Economics, May 2010 [Paper]

Secrets of the Academy: The Drivers of University Endowment Success (with Joshua Lerner and Antoinette Schoar)
Journal of Economic Perspectives 22, Summer 2008 [Paper]

Evolution of Digital Organisms at High Mutation Rates Leads to Survival of the Flattest (with C. Wilke, C. Ofria, R. E. Lenski, and C. Adami)
Nature, July 2001 [Paper]

"Second Chance: Life Without Student Debt," by Marco Di Maggio, Ankit Kalda, Vincent W. Yao 
SFS Cavalcade, May 2019 [slides]

"The Consumption Response to Realized Capital Gains: Evidence from Mutual Fund Liquidations," by Steffen Meyer, Michaela Pagel, Alessandro Previtero
SFS Cavalcade, May 2019 [slides]

"Investment Returns and Distribution Policies of Non-Profit Endowment Funds", by Sandeep Dahiya and David Yermack
American Finance Association Conference, January 2019 [slides]

"How Does Consumer Bankruptcy Protection Impact Household Outcomes?" by Carlos Parra
Western Finance Association Conference, June 2018 [slides]

"Import Competition and Household Debt" by Jean Noel Barrot, Erik Loualiche, Matthew Plosser and Julien Sauvagnat
Western Finance Association Conference, June 2017 [slides]

"Credit Score Doctor" by Luojia Hu, Xing Huang, and Andrei Simonov
Midwest Finance Association ConferenceMarch 2017 [slides]

“The Marginal Propensity to Consume Out of Credit: Evidence from Random Assignment of 54,522 Credit Lines" by Deniz Aydin
NYU Stern Household Finance Meeting, February 2017 [slides]

"Cancer Diagnoses and Household Debt Overhang" by Arpit Gupta, Edward R. Morrison,  Catherine R. Fedorenko and Scott Ramsey
NBER Summer Institute – Law and Economics, July 2016 [slides]

"The Impact of Consumer Credit Access on Employment, Earnings, and Entrepreneurship" by Kyle Herkenhoff, Gordon Phillips, and Ethan Cohen-Cole
NBER Summer Institute – Entrepreneurship, July 2016 [slides]

"Regulating Consumer Financial Products: Evidence from Credit Cards" by Sumit Agarwal, Souphala Chomsisengphet, Neale Mahoney, and Johannes Stroebel
NBER Law and Economics, February 2014 [slides]

"The Difference a Day (Doesn’t) Make: Does Giving Borrowers More Time to Repay Break the Cycle of Repeated Payday Loan Borrowing?" by Susan Payne Carter, Paige Marta Skiba, and Justin Sydnor
American Economic Association Conference, January 2014 [slides]