Payday-loan bans: evidence of indirect effects on supply

Stefanie R. Ramirez ()
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Stefanie R. Ramirez: University of Idaho

Empirical Economics, 2019, vol. 56, issue 3, No 10, 1037 pages

Abstract: Abstract In November 2008, Ohio enacted the Short-Term Loan Law which imposed a 28% APR on payday loans, effectively banning the industry. Using licensing records from 2006 to 2010, I examine if there are changes in the supply side of the pawnbroker, precious-metals, small-loan, and second-mortgage lending industries during periods when the ban is effective. Seemingly unrelated regression results show the ban increases the average county-level operating small-loan, second-mortgage, and pawnbroker licensees per million by 156, 43, and 97%, respectively.

Keywords: Financial institutions; Alternative financial services; Payday lending; Regulation (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s00181-018-1447-2

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