The Real Costs of Credit Access: Evidence from the Payday Lending Market*

@article{Melzer2011TheRC,
  title={The Real Costs of Credit Access: Evidence from the Payday Lending Market*},
  author={Brian T. Melzer},
  journal={Quarterly Journal of Economics},
  year={2011},
  volume={126},
  pages={517-555}
}
Using geographic differences in the availability of payday loans, I estimate the real effects of credit access among low-income households. Payday loans are small, high interest rate loans that constitute the marginal source of credit for many high risk borrowers. I find no evidence that payday loans alleviate economic hardship. To the contrary, loan access leads to increased difficulty paying mortgage, rent and utilities bills. The empirical design isolates variation in loan access that is… Expand
294 Citations
Spillovers from Costly Credit
  • 11
  • PDF
Does Increasing Access to Formal Credit Reduce Payday Borrowing
  • 2
  • Highly Influenced
  • PDF
Do Payday Loans Cause Bankruptcy?
  • 156
  • PDF
Price Regulation in Credit Markets: A Trade-Off between Consumer Protection and Credit Access
  • 17
  • Highly Influenced
  • PDF
Cash-on-hand and demand for credit
House prices and the allocation of consumer credit
  • 2
  • PDF
...
1
2
3
4
5
...