Spillovers from Costly Credit

• 成果类型: Article
• 署名作者: Melzer, Brian T.
• 署名单位: Northwestern University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhx134
• 发表日期: 2018
• 页码: 3568
• 关键词: FOOD STAMP; Payday; consumption; access; foreclosure; IMPACT

摘要

Low-income households with proximate access to payday loans exhibit greater economic distress, higher take-up of food assistance benefits, and greater delinquency on child support payments than peers without proximate loan access. These findings suggest that borrowing can exacerbate distress, leading borrowers to use transfer programs and to prioritize payday loan payments over other liabilities like child support. In that way, payday lending produces negative externalities-costs imposed on taxpayers that fund transfer programs and nonresident family members that fail to receive child support.