Payday Lenders: Heroes or Villains?

@article{Morse2011PaydayLH,
  title={Payday Lenders: Heroes or Villains?},
  author={Adair Morse},
  journal={Journal of Financial Economics},
  year={2011},
  volume={102},
  pages={28-44}
}
  • Adair Morse
  • Published 2011
  • Economics
  • Journal of Financial Economics
Does access to high-interest credit (payday loans) exacerbate or mitigate individual financial distress. Using natural disasters as an exogenous shock, I apply a propensity score-matched, triple-difference specification to identify a causal relation between welfare and access to credit. California foreclosures increase by 4.5 units per 1,000 homes after a natural disaster. The existence of payday lenders mitigates 1.0-1.3 of them, with the caveat that not all payday loans are for emergency… Expand
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