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A Bayesian analysis of payday loans and their regulation

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  • Li, Mingliang
  • Mumford, Kevin J.
  • Tobias, Justin L.

Abstract

Payday loans are small short-term loans that a borrower must repay or renew on his/her next payday. In states where payday lending is legal, many terms of these loans are regulated, ostensibly to protect the consumer from excessively burdensome lending practices.

Suggested Citation

  • Li, Mingliang & Mumford, Kevin J. & Tobias, Justin L., 2012. "A Bayesian analysis of payday loans and their regulation," Journal of Econometrics, Elsevier, vol. 171(2), pages 205-216.
    • Handle: RePEc:eee:econom:v:171:y:2012:i:2:p:205-216
    DOI: 10.1016/j.jeconom.2012.06.010
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    Cited by:

    1. Dasgupta, Kabir & Mason, Brenden J., 2020. "The effect of interest rate caps on bankruptcy: Synthetic control evidence from recent payday lending bans," Journal of Banking & Finance, Elsevier, vol. 119(C).
    2. Susan Payne Carter, 2015. "Payday Loan and Pawnshop Usage: The Impact of Allowing Payday Loan Rollovers," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(2), pages 436-456, July.
    3. Doris Neuberger & Udo Reifner, 2020. "Systemic Usury and the European Consumer Credit Directive," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 89(1), pages 115-132.
    4. Alycia Chin & Charles J. Romeo, 2022. "Repeat use of short‐term credit: The case of deposit advance products," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(4), pages 1705-1726, December.
    5. Robert Mayer, 2013. "When and Why Usury Should be Prohibited," Journal of Business Ethics, Springer, vol. 116(3), pages 513-527, September.

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