Comments on: Do 200% APR Loans Make People Better Off?

By: How would you know if politics was about policy? « Modeled Behavior

How would you know if politics was about policy? « Modeled Behavior — Tue, 03 May 2011 12:08:21 +0000

[...] Or consider what could be learned about payday lending if some state or group of states hired Dean Karlan and Jonathan Zinman to design a study-policy. It would certainly have been a good use of money to randomize some of the [...]

By: Payday loans for the wealthy « Modeled Behavior

Payday loans for the wealthy « Modeled Behavior — Tue, 11 May 2010 11:24:17 +0000

[...] borrowers are going to waste the money or spend it on something they don’t need? Because the evidence suggests that by and large they spend it on stuff they need. Then is it because unregulated lenders [...]

By: Payday loans for millionaires « Modeled Behavior

Payday loans for millionaires « Modeled Behavior — Tue, 11 May 2010 11:23:12 +0000

By: Risky Investor » Secondary Sources: Dollar, Entitlements, Access to Credit

Risky Investor » Secondary Sources: Dollar, Entitlements, Access to Credit — Thu, 10 Dec 2009 16:56:40 +0000

[...] Bad Loans?: On Modeled Behavior, Adam Ozimek looks at research that shows expanded access to credit, even 200% APR loans improves people’s lives. “They find that expanded access to credit significantly improves overall outcomes. Borrowers have higher employment, income, food consumption, and an index value of several measures of subjective well-being for the six-to-twelve months after the loan decision. Receiving a loan increased the likelihood of being employed by 20% for marginal borrowers. This is a stunning number. The authors argue that this may be because many of the loan applicants were borrowing to avoid losing their jobs. As seen in the table below, which I created using numbers from the paper, 19.4% used the loans for transportation costs. One can also imagine the 5.4% that went to healthcare may have helped people keep jobs as well; if they cannot get rid of an illness fast enough they may be fired for absence.” [...]

By: Secondary Sources: Dollar, Entitlements, Access to Credit - Real Time Economics - WSJ

Thu, 10 Dec 2009 15:37:08 +0000

By: Ingroup-outgroup self-serving bias « Entitled to an Opinion

Ingroup-outgroup self-serving bias « Entitled to an Opinion — Thu, 10 Dec 2009 08:39:56 +0000

[...] even to that, Adam Ozimek finds evidence supporting the revealed preference camp over the behavioral economics crowd on high interest loans. [...]