The effects of disclosure and enforcement on payday lending in Texas

• 成果类型: Article
• 署名作者: Wang, Jialan; Burke, Kathleen
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; Congressional Budget Office
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.09.024
• 发表日期: 2022
• 页码: 489-507
• 关键词: Payday lending; disclosure; Financial regulation; ENFORCEMENT

摘要

In 2012, Texas and two municipalities therein adopted regulations governing the payday loan market. Austin and Dallas enacted supply restrictions limiting the loan-to-income ratio and mandating amortization. The state adopted an information disclosure inspired by Bertrand and Morse (2011) presenting the cost and typical usage of payday loans in easy-to-understand terms. We find that the municipal restrictions led to a 61% decline in loan volume in Austin and a 44% decline in Dallas, with the effects driven by the start of enforcement. The statewide disclosures led to a persistent 12% decline in loan volume in the first six months. (C) 2021 Elsevier B.V. All rights reserved.