Usinggeographicdifferences intheavailabilityof paydayloans, I estimatethe real effects of credit access among low-income households. Payday loans are small, highinterest rate loans that constitutethemarginal sourceof credit formanyhigh risk borrowers. I find no evidence that payday loans alleviate economic hardship. Tothecontrary, loanaccess leads toincreaseddifficultypayingmortgage, rent and u...

This article discusses the economic consequences and social implications of the Community Reinvestment Act. The CRA has direct economic effects on banks and neighborhoods and these neighborhoods also gain social benefits from the availability of credit which increase the quality of life in these areas. The article identifies the economic issues associated with providing access to credit in low ...

Abstract We investigate whether firms’ number of credit relationships with financial institutions affects labor market outcomes. Using 5 million observations on matched and panel data from Brazil, we estimate IV regressions, employing exogenous variation in firm-lender due to nationwide bank M&A activity. Firms more employ workers pay higher wage bills. Credit availability, cost credit, ins...

Cloud Computing is drawing people’s attention from all walks of the IT world. It promises significant reduction of cost among many other advantages as it proclaims, including increased availability, fast provision, ondemand, and pay-per-use, etc. This paper presents a novel model of Cloud Computing, named “Credit Union” model (referred to as the CU model or CUM for short). This model is motivat...

The analyses and conclusions set forth are those of the author and do not necessarily indicate concurrence by other members of the research staffs, by the Board of Governors, or by the Federal Reserve Banks.

Research on relationship lending focuses attention on economic factors which influence the relationships between SMEs’ owners/managers and banks but no previous work has focused on the role of trust. Trust is expected to reduce agency costs, the perceived credit risk and, thus, influence credit availability and credit terms. Trustworthiness is associated with three attributes of SME owner manag...

Research on relationship lending focuses attention on economic factors which influence the relationships between SMEs’ owners/managers and banks but no previous work has focused on the role of trust. Trust is expected to reduce agency costs, the perceived credit risk and, thus, influence credit availability and credit terms. Trustworthiness is associated with three attributes of SME owner manag...

Research on relationship lending focuses attention on economic factors which influence the relationships between SMEs’ owners/managers and banks but no previous work has focused on the role of trust. Trust is expected to reduce agency costs, the perceived credit risk and, thus, influence credit availability and credit terms. Trustworthiness is associated with three attributes of SME owner manag...