2026-09-19T03:27:14Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/1446992022-08-30T03:27:18Zcom_1721.1_7582com_1721.1_7581col_1721.1_131023
Palmer, Christopher
Tiurina, Mariia
Sloan School of Management
2022-08-29T16:05:37Z
2022-08-29T16:05:37Z
2022-05
2022-06-09T14:33:33.127Z
https://hdl.handle.net/1721.1/144699
I study the effect of credit access restrictions on post-disaster financial outcomes of subprime consumers in Arkansas, a state with the lowest usury cap of 17 percent. Due to the restrictive cap, neither payday nor consumer finance companies operate in Arkansas, while they do in all six neighboring states. Using the difference-in-difference approach, I find that borrowers in border zip codes are less likely to be delinquent on mortgage debt, and have a lower drop in credit score in the post-disaster period in comparison with borrowers in center zip codes. The result is consistent with the adverse effects of credit rationing followed by consumer protection law.
S.M.
Massachusetts Institute of Technology
In Copyright - Educational Use Permitted
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http://rightsstatements.org/page/InC-EDU/1.0/
Tornado in Credit Desert: Role of Consumer Credit Access in Disaster Recovery
Thesis
application/pdf
Master
Master of Science in Management Research
Publication
unknown
unknown
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<Abstract>I study the effect of credit access restrictions on post-disaster financial outcomes of subprime consumers in Arkansas, a state with the lowest usury cap of 17 percent. Due to the restrictive cap, neither payday nor consumer finance companies operate in Arkansas, while they do in all six neighboring states. Using the difference-in-difference approach, I find that borrowers in border zip codes are less likely to be delinquent on mortgage debt, and have a lower drop in credit score in the post-disaster period in comparison with borrowers in center zip codes. The result is consistent with the adverse effects of credit rationing followed by consumer protection law.</Abstract>
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