Growing up without finance

• 成果类型: Article
• 署名作者: Brown, James R.; Cookson, J. Anthony; Heimer, Rawley Z.
• 署名单位: Iowa State University; University of Colorado System; University of Colorado Boulder; Boston College
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.05.006
• 发表日期: 2019
• 页码: 591-616
• 关键词: Household finance; Native American reservations; Formative exposures; financial development; Local banking

摘要

Early life exposure to local financial institutions increases household financial inclusion and leads to long-term improvements in consumer credit outcomes. We identify the effect of local financial markets using Congressional legislation that led to unintended differences in financial market development across Native American reservations. Individuals from financially underdeveloped reservations enter consumer credit markets later, and upon reaching adulthood, have ten point lower credit scores and four percentage point more delinquent accounts. These effects are long-lived and depreciate slowly after individuals move to more developed areas. Formative exposures to local banking improve consumer credit behavior by increasing financial literacy and financial trust. (C) 2019 Elsevier B.V. All rights reserved.