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Payday-loan bans: proof of indirect results on supply

Payday-loan bans: proof of indirect results on supply

Styles in branch counts

Figures 1, 2, 3, 4, and 5 display the styles in observed running, opening, and shutting branches for payday loan providers, pawnbrokers, precious-metals dealers, small-loan loan providers, and second-mortgage lenders during the state-level by duration. corresponds to Period 1. The APR ban ended up being finalized because of the state governor in Period 30, initially enacted in Period 33, last but not least effective in Period 35; these occasions are suggested in each figure by the solid straight lines.

From Fig. 1, the amount of running payday lending branches grows from durations 1 to 36 with a little decline in Period 24. The sheer number of operating payday lenders stays high until Period 37. It is two durations following the policy took impact and, most crucial, the time after which payday that is current licenses expired. The timing of the structural changes shows the effectiveness associated with the policy in determining payday that is practicing and decreasing the range working payday lenders to zero.

Trend in branch information: payday lenders. This figure shows the trend in branch counts for the amount of seen, new, and shutting lending that is payday starting (Period 1) through (Period 60) for the state of Ohio.