Payday-loan bans: proof of indirect impacts on supply

Abstract Ohio enacted the Short-Term Loan Law which imposed a 28% APR on pay day loans, efficiently banning the industry. Utilizing certification records, we examine if you will find alterations in the supply part associated with the pawnbroker, precious-metals, small-loan, and second-mortgage lending companies during durations as soon as the ban is beneficial. Apparently regression that is unrelated reveal the ban advances the typical county-level operating small-loan, second-mortgage, and pawnbroker licensees per million by 156,…