Mass-Shootings and Peer-to-Peer Lending

This paper analyzes the effect of mass-shootings on peer-to-peer lending behavior. Using US data from 2014-2018, we implement both an event study and a difference-in-differences methodology to exploit the quasi-experimental nature of mass-shooting incidents on local credit markets. Our findings indicate that immediately after a mass-shooting event, borrowing costs increase (higher interest rates and lower loan amounts) for individuals in affected communities relative to those in non-affected communities. These findings highlight that online credit marketplaces are reactive to random local shocks of violence at the community level