The real costs of credit access: Evidence from the payday lending market

Quarterly Journal of Economics

Volumn 126, Issue 1, 2011, Pages 517-555

  Melzer, Brian T ^a  

^a NORTHWESTERN UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CREDIT PROVISION; DEBT; EMPIRICAL ANALYSIS; INTEREST RATE; LENDING BEHAVIOR; MORTGAGE LENDING; PUBLIC SPENDING;

EID: 79955426257     PISSN: 00335533     EISSN: 15314650     Source Type: Journal    
DOI: 10.1093/qje/qjq009     Document Type: Article

References (36)

1. Abi-Habib, Natalie, Adam Safir, and Timothy Triplett, NSAF Public Use File User's Guide, Urban Institute, (Washington, DC, 2004).
2. Ace Cash Express, Inc., 2000, Form10-K,http://www.sec.gov/Archives/edgar/data/849116/000084911600000011/0000849116-00-00011-index.htm.
3. Appelbaum, Binyamin, "Lenders find pay day over border," The Charlotte Observer, 10 March 2006, http://www.appleseednetwork.com/servlet/ArticleInfo?articleId=128.
4. Ausubel, Lawrence M, "The Failure of Competition in the Credit Card Market," American Economic Review, 81 (1991), 50-81.
5. Barr, Michael S, "Banking the Poor," Yale Journal on Regulation, 21 (2004), 121-237.
6. Benmelech, Efraim, and Tobias J. Moskowitz, "The Political Economy of Financial Regulation: Evidence from U.S. State Usury Laws in the 19th Century," Journal of Finance, 65 (2010), 1029-1073.
7. Bond, Philip, David K. Musto, and Bilge Yilmaz, "Predatory Mortgage Lending," Journal of Financial Economics, 94 (2009), 412-427.
8. Brickley, Peg, "Bank teams up with 'payday' lender," Philadelphia Business Journal, 2 July 1999, http://philadelphia.bizjournals.com/philadelphia/stories/1999/07/05/story4.html.
9. Campbell, Dennis F, Aśis Marťinez Jerez, and Peter Tufano, Bouncing Out of the Banking System: An Empirical Analysis of Involuntary Bank Account Closures, Working Paper (2009).
10. Carrell, Scott, and Jonathan Zinman, In Harm's Way? Payday Loan Access and Military Personnel Performance, Working Paper (2008).
11. Caskey, John P, "Fringe Banking and the Rise of Payday Lending," Credit Markets for the Poor, Ed. Patrick Bolton and Howard Rosenthal, New York: Russell Sage Foundation, 2005.
12. Community Financial Services Association of America, 14 November 2007, Myths vs. Reality of Payday Loans, http://www.cfsa.net/mythvsreality.html.
13. Elliehausen, Gregory, and Edward C. Lawrence, Payday Advance Credit in America: An Analysis of Customer Demand, Credit Research Center, McDonough School of Business, Georgetown University, Monograph #35 (2001).
14. Elliehausen, Gregory, Consumers' Use of High-Price Credit Products: Do They Know What They Are Doing?, Working Paper, Networks Financial Institute (2006).
15. Fox, Jean Ann, and Edmund Mierzwinski, November 2001, Rent-A-Bank Payday Lending: How Banks Help Payday Lenders Evade State Consumer Protections. Consumer Federation of America and the U.S. Public Interest Research Group.
16. "Georgia Border Residents Going out of State to Acquire Legal Short-term Cash Advances," Business Wire, 7 March 2007, http://www.allbusiness.com/services/business-services/4539652-1.html.
17. Karlan, Dean, and Jonathan Zinman, "Expanding Credit Access: Using Randomized SupplyDecisions toEstimate the Impacts," Review of Financial Studies, 23 (2010), 433-464.
18. Laibson, David, "Golden Eggs and Hyperbolic Discounting," Quarterly Journal of Economics, 62 (1997), 443-477.
19. Matheson, Kathy, 12 December 2005, "Pennsylvania lawsuit over payday lending seeks reimbursement for thousands," Associated Press, http://www.pliwatch.org/news article051222B.html.
20. McCaul, Elizabeth, 29 June 1999, Letter - "Re: Payday Loans", State of New York Banking Department. http://www.banking.state.ny.us/lt990629.htm.
21. Melzer, Brian T., and Donald P. Morgan, Competition and Adverse Selection in a Consumer Loan Market: The Curious Case of Overdraft vs. Payday Credit, Federal Reserve Bank of New York Staff Reports, Number 391 (2010).
22. Morgan, Donald P., Defining and Detecting Predatory Lending, Federal Reserve Bank of New York Staff Reports, Number 273 (2007).
23. Morgan, Donald P., and Michael R. Strain, Payday Holiday: How House holds Fare after Payday Credit Bans, Federal Reserve Bank of New York Staff Reports, Number 309 (2008).
24. Morse, Adair, "Payday Lenders: Heroes or Villains?", Journal of Financial Economics (Forthcoming).
25. "North Country Firm Sued Over Payday Loans Scheme", 1 September 2004, Department of Law, State of New York. http://www.oag.state.ny.us/press/2004/sep/sep1a04.html.
26. O'Donoghue, Ed, "Bankrupt Home Gold recoups $1.5million," The Greenville News, 15December 2003, http://greenvilleonline.com/news/specialreport/2003/12/15/2003121520983.htm.
27. O'Donoghue, Ted, and Matthew Rabin, "Doing It Now or Later," American Economic Review, 89 (1999), 103-124.
28. Office of the Comptroller of the Currency, Community Reinvestment Act Performance Evaluation, Eagle National Bank, 6 April 1998, http://www.occ.treas.gov/ftp/craeval/aug98/21118.pdf.
29. Pence, Karen, "Foreclosing on Opportunity: State Laws and Mortgage Credit," The Review of Economics and Statistics, 88 (2006), 177-182.
30. Sekhri, Rajiv, "Company cashes in on pay day loan boom," Business Courier of Cincinatti, 2 May 1997, http://cincinnati.bizjournals.com/cincinnati/stories/1997/05/05/story6.html.
31. Stegman, Michael, "Payday Lending," Journal of Economic Perspectives, 21 (2007), 169-190.
32. Skiba, Paige Marta, and Jeremy Tobacman, Do Payday Loans Cause Bankruptcy?, Working Paper (2008).
33. Spiller, Karen, "'Pay day loans' do booming business in N.H." The Telegraph 22May 2006. http://www.boston.com/news/local/newhampshire/articles/2006/05/22/paydayloansdoboomingbusinessinnh/.
34. Veritec Solutions, Inc., August, Florida Trends in Deferred Presentment, (2006).
35. Veritec Solutions, Inc., August, Oklahoma Trends in Deferred Deposit Lending, (2006).
36. Zinman, Jonathan, "Restricting Consumer Credit Access: Household Survey Evidence on Effects Around the Oregon Rate Cap," Journal of Banking and Finance, 34 (2010), 546-556.