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Race, risk, and greed: Harold Black's contributions to the institutional economics of finance

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  • Michael Munger

    (Duke University)

  • Cameron Tilley

    (Duke University)

Abstract

Dr. Harold Black has made a career of investigating the effects of different rules and institutional arrangements on the extent to which market participants in finance can exercise a taste for discrimination. This paper considers the nature of Black's contributions, and reviews some particulars of his voluminous published research, focusing especially on his work on the number of "overages" charged by banks, and the differences in the effects of the race of bank owners, as explained by the race of customers. The paper concludes by connecting Dr. Black’s work to his “origin story,” which helps explain his consistent focus on careful empirical distinctions rather than preconceptions and biases.

Suggested Citation

  • Michael Munger & Cameron Tilley, 2023. "Race, risk, and greed: Harold Black's contributions to the institutional economics of finance," Public Choice, Springer, vol. 197(3), pages 335-346, December.
    • Handle: RePEc:kap:pubcho:v:197:y:2023:i:3:d:10.1007_s11127-023-01073-w
    DOI: 10.1007/s11127-023-01073-w
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    References listed on IDEAS

    as
    1. Kevin Lang & Ariella Kahn-Lang Spitzer, 2020. "Race Discrimination: An Economic Perspective," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 68-89, Spring.
    2. Michael C. Munger, 2019. "Tullock and the welfare costs of corruption: there is a “political Coase Theorem”," Public Choice, Springer, vol. 181(1), pages 83-100, October.
    3. Black, Harold A. & Boehm, Thomas P. & DeGennaro, Ramon P., 2003. "Is there discrimination in mortgage pricing? The case of overages," Journal of Banking & Finance, Elsevier, vol. 27(6), pages 1139-1165, June.
    4. Michael C. Munger, 2018. "30 years after the nobel: James Buchanan’s political philosophy," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 31(2), pages 151-167, June.
    5. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    6. Harold Black & Breck Robinson & Robert Schweitzer, 2001. "Do lenders discriminate against low-income borrowers?," The Review of Black Political Economy, Springer;National Economic Association, vol. 28(4), pages 73-94, June.
    7. Black, Harold & Schweitzer, Robert L & Mandell, Lewis, 1978. "Discrimination in Mortgage Lending," American Economic Review, American Economic Association, vol. 68(2), pages 186-191, May.
    8. Harold A. Black & Robert L. Schweitzer, 1985. "Black-Controlled Credit Unions: A Comparative Analysis," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 8(3), pages 193-202, September.
    9. McCubbins, Mathew D & Noll, Roger G & Weingast, Barry R, 1987. "Administrative Procedures as Instruments of Political Control," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 3(2), pages 243-277, Fall.
    10. HAROLD Black & M. Collins & Ken Cyree, 1997. "Do Black-Owned Banks Discriminate against Black Borrowers?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 11(1), pages 189-204, February.
    11. Leeson, Peter T. & Harris, Colin, 2018. "Wealth-destroying private property rights," World Development, Elsevier, vol. 107(C), pages 1-9.
    12. Armen A. Alchian, 1950. "Uncertainty, Evolution, and Economic Theory," Journal of Political Economy, University of Chicago Press, vol. 58(3), pages 211-211.
    13. G. P. Manish & Colin O’Reilly, 2019. "Banking regulation, regulatory capture and inequality," Public Choice, Springer, vol. 180(1), pages 145-164, July.
    14. Harold Black, 1999. "Is there discrimination in mortgage lending? What does the research tell us?," The Review of Black Political Economy, Springer;National Economic Association, vol. 27(1), pages 23-30, September.
    15. Leeson, Peter T., 2011. "Government, clubs, and constitutions," Journal of Economic Behavior & Organization, Elsevier, vol. 80(2), pages 301-308.
    16. Friedrich Heinemann & Martin Schüler, 2004. "A Stiglerian View on Banking Supervision," Public Choice, Springer, vol. 121(1), pages 99-130, October.
    17. Gramm, Marshall, 2003. "The Case for Regulatory Rent-Seeking: CRA Based Protests of Bank Mergers and Acquisitions," Public Choice, Springer, vol. 116(3-4), pages 367-379, September.
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    More about this item

    Keywords

    Discrimination; Financial regulation; Lending; Overages; Race;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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