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- Title
Do payday lending bans protect or constrain regional economies? Evidence from the Military Lending Act's final rule.
- Authors
Carpenter, Craig Wesley; Deming, Kristopher; Anders, John; Lotspeich‐Yadao, Michael; Tolbert, Charles M.; Ingrao, Adam
- Abstract
The 2007 Military Lending Act attempted to ban high‐interest loans to U.S. military members and the 2017 "Final Rule" further restricted access, causing regional shocks in payday lending exposure in counties with a military base. Difference‐in‐differences and dynamic estimators provide mixed evidence on the effect of this payday lending access shock on regional economic outcomes and local business outcomes. However, we consistently find statistically significant reduced entry and exit of firms. Given payday lenders congregate around low‐income and minoritized populations analogously to how they congregated around military bases, these results provide policy implications for more general usury bans.
- Subjects
PAYDAY loans; LOANS; USURY; MILITARY bases; UNITED States armed forces; REGIONAL development; ECONOMIC shock
- Publication
Contemporary Economic Policy, 2024, Vol 42, Issue 2, p319
- ISSN
1074-3529
- Publication type
Article
- DOI
10.1111/coep.12636