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Deputizing financial institutions to fight elder abuse

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  • Carlin, Bruce
  • Umar, Tarik
  • Yi, Hanyi

Abstract

Permissive laws deputize financial professionals to screen for misbehavior without providing explicit incentives. These are very common in financial markets. To evaluate their effectiveness, we exploit the staggered adoption of the 2016 Model Act provisions intended to curb elder abuse. We find a drop in reports of abuse by financial professionals to the Department of Treasury and, separately, in financial crimes against the elderly as monitored by the FBI. The effect is stronger where the elderly are more isolated. Our results highlight the role financial professionals play in combating social problems and the impact of permissive policies.

Suggested Citation

  • Carlin, Bruce & Umar, Tarik & Yi, Hanyi, 2023. "Deputizing financial institutions to fight elder abuse," Journal of Financial Economics, Elsevier, vol. 149(3), pages 557-577.
    • Handle: RePEc:eee:jfinec:v:149:y:2023:i:3:p:557-577
    DOI: 10.1016/j.jfineco.2023.06.004
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    References listed on IDEAS

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    More about this item

    Keywords

    Elder abuse; Fraud; Investment advisers; Financial institutions; Regulation;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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