This paper tests for incentive and selection effects in a subprime consumer credit market. We estimate the incentive effect of loan size on default using sharp discontinuities in loan eligibility rules. This allows us to estimate the magnitude of selection from the cross-sectional correlation...

High-cost consumer credit has proliferated in the past two decades, raising regulatory scrutiny. We match administrative data from a payday lender with nationally representative credit bureau files to examine the choices of payday loan applicants and assess whether payday loans help or harm...

This article provides a side-by-side comparison of payday lending and consumer litigation funding in order to aid policymakers. Funding has similarities with payday lending because they are both alternative financial services, involve high interest rates, and cater to customers who need money...

Unsecured Installment lenders offer high-interest credit to low-income, credit constrained consumers. Lenders typically extend $600 in cash to be paid back in equal monthly installments over 6-9 months at an annualized interest rate of around 125 percent. As state and federal regulations tighten...

This paper estimates the impact of a bad credit report on financial outcomes by exploiting exogenous variation in the timing of credit flag removals. Credit flags are removed from credit reports after seven years, generating an immediate change in the information available to the credit market....

This paper tests for bias in consumer lending decisions using administrative data from a high-cost lender in the United Kingdom. We motivate our analysis using a simple model of bias in lending, which predicts that profits should be identical for loan applicants from different groups at the...

This paper tests for bias in consumer lending decisions using administrative data from a high-cost lender in the United Kingdom. We motivate our analysis using a simple model of discrimination in lending, which predicts that profits should be identical for different groups at the margin if loan...

This paper tests for bias in consumer lending decisions using administrative data from a high-cost lender in the United Kingdom. We motivate our analysis using a simple model of bias in lending, which predicts that profits should be identical for loan applicants from different groups at the...