This paper examines whether giving large cash transfers to financially distressed people causes them to avoid bankruptcy. A comparison of Florida Lottery winners who randomly received $50,000 to $150,000 to small winners indicates that such transfers only postpone bankruptcy rather than prevent...

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...

I use evidence from a $300 tax rebate to test whether receipt of this cash infusion by payday borrowers affects the likelihood of borrowing, loan sizes, or default behavior. Results from fixed-effects models show that the rebate decreased the probability of taking out a payday loan in the short...

The Italian judicial system is notoriously slow, with an estimated backlog of five million cases. We use a sample of 652,174 court cases in Turin to study the role that various adjudication procedures play in judicial timeliness. We exploit plausibly exogenous variation in the procedures...

Payday loans continue to be a commonly used yet controversial source of credit for low-income consumers. We study the consequences of capping online payday loan sizes using a fuzzy regression kink design. The interaction of lenders’ underwriting rules with state loan caps creates exogenous...

Labor arbitration is often viewed as a more peaceful, productive, and private alternative to workplace strikes and violence. On the other hand, statutory laws are intended to protect all workers, and contract law default rules and rules of interpretation often serve a protective role that could...