Branch location choice: Do lenders discriminate?

Akm Hossain

Economía, 2010, vol. 35, issue 30, 11-55

Abstract: This paper examines the factors that affect branch location choice of depository lenders. Consistent with previous studies, the tract level analysis in this paper finds a strong negative impact of neighborhood income and minority composition on individual access to depository branches even after controlling for neighborhood unobservables. In the lender level analysis the negative impact of income and race does not persist once neighborhood fixed effects are included. This raises an important incongruity between individual (lender) and aggregate (tract) level analysis. The paper suggests that this inconsistency is related to the logic of disparate treatment and disparate impact by showing how a neighborhood with low income and high minority composition may end up with fewer branches (a disparate impact) even when no individual lender makes branch location choice based on income or race (no disparate treatment).

Keywords: Branch location choice; neighborhood effects; lender heterogeneity; disparate treatment and disparate impact of branch location choice. (search for similar items in EconPapers)
JEL-codes: G2 J15 R2 R3 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
ftp://iies.faces.ula.ve/Pdf/Revista30/Rev30Hossain.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ula:econom:v:35:y:2010:i:30:p:11-55

Access Statistics for this article

Economía is currently edited by Dyanna María Ruíz Uzcátegui and Yibeli Emilia Briceño Carrero

More articles in Economía from Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela Facultad de Ciencias Económicas y Sociales. Instituto de Investigaciones Económicas y Sociales. Campus Universitario Liria, Edificio G, Tercer Nivel. Mérida 5101, Estado Mérida, Venezuela. Contact information at EDIRC.
Bibliographic data for series maintained by Alexis Vásquez ().