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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

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    1. G. P. Manish & Colin O’Reilly, 2019. "Banking regulation, regulatory capture and inequality," Public Choice, Springer, vol. 180(1), pages 145-164, July.
    2. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    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. 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.
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    9. 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.
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    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. 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.
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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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