Coelho, Christiano A.; Mello, João M.P. De; Funchal, Bruno - In: The Review of Economics and Statistics 94 (2012) 4, pp. 925-934
In December 2003, the Brazilian Congress passed a law that led to a natural personal lending experiment. The law allows banks to offer loans with repayment through automatic payroll deduction, which, in effect, turns future income into collateral. We estimate the impact of the new law using auto...