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Payday-loan bans: evidence of indirect effects on supply

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  • Stefanie R. Ramirez

    (University of Idaho)

Abstract

In November 2008, Ohio enacted the Short-Term Loan Law which imposed a 28% APR on payday loans, effectively banning the industry. Using licensing records from 2006 to 2010, I examine if there are changes in the supply side of the pawnbroker, precious-metals, small-loan, and second-mortgage lending industries during periods when the ban is effective. Seemingly unrelated regression results show the ban increases the average county-level operating small-loan, second-mortgage, and pawnbroker licensees per million by 156, 43, and 97%, respectively.

Suggested Citation

  • Stefanie R. Ramirez, 2019. "Payday-loan bans: evidence of indirect effects on supply," Empirical Economics, Springer, vol. 56(3), pages 1011-1037, March.
    • Handle: RePEc:spr:empeco:v:56:y:2019:i:3:d:10.1007_s00181-018-1447-2
    DOI: 10.1007/s00181-018-1447-2
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    Cited by:

    1. Stefanie R. Ramirez, 2020. "Regulation And The Payday Lending Industry," Contemporary Economic Policy, Western Economic Association International, vol. 38(4), pages 675-693, October.

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