Galperin Research Banning Payday Lending Benefits Low

Main navigation Johns Hopkins Legacy Online packages Faculty Directory Experiential learning Career resources Alumni mentoring program Util Nav CTA CTA Breadcrumb Galperin Research: Banning Payday Lending Benefits Low-Income People A newly released Federal Reserve Bank of Boston working paper, co-authored by Assistant Professor Roman Galperin of the Johns Hopkins Carey Business School, finds that low-income folks benefit when their entry to “payday lending” (brief-time period, high-rate loans) is restricted. In the paper, Galperin and doctoral candidate Andrew Weaver of the Massachusetts Institute of Technology’s Sloan School of Management present that borrower demand for an alternative source of excessive-value credit (such as loans against expected tax refunds) falls after payday lending is banned. These findings suggest that many low-earnings debtors are trapped in an unproductive cycle of debt and thus may gain advantage from regulatory bans on such types of lending, in accordance with the researchers. Go to /yZLuZy to learn the paper, which is titled “Payday Lending Regulation and the Demand for Alternative Financial Services.” To discuss the paper’s findings with Galperin, contact Patrick Erco lano in the Carey Business School communications workplace at or . Posted one hundred International Drive