In this article we analyze the impact of automatic bill payment (ABP) on household debt. We
present a theoretical intertemporal consumption model that shows an inattention effect when
individuals subscribe an ABP for their debts. This effect causes a higher level of
indebtedness (beyond optimal) and, therefore, well-being loss. Furthermore, we empirically
test this theory for Chile, an emerging economy. We estimate a Tobit-Probit conditional
mixed process (CMP) model, using data from the Central Bank of Chile's Household …