How Does Online Lending Influence Bankruptcy Filings?

2021 ◽  
Author(s):  
Hongchang Wang ◽  
Eric M. Overby
Keyword(s):  
Instrumental Variables ◽  
Policy Implications ◽  
Easy Access ◽  
Difference In Differences ◽  
Access To Credit ◽  
Financial Products ◽  
Online Platforms ◽  
Level Data ◽  
Online Lending ◽  
The Impact

By providing quick and easy access to credit, online lending platforms may help borrowers overcome financial setbacks and/or refinance high-interest debt, thereby decreasing bankruptcy filings. On the other hand, these platforms may cause borrowers to overextend themselves financially, leading to a “debt trap” and increasing bankruptcy filings. To investigate the impact of online lending on bankruptcy filings, we leverage variation in when state regulators granted approval for a major online lending platform—Lending Club—to issue peer-to-peer loans. Using a difference-in-differences approach, we find that state approval of Lending Club led to an increase in bankruptcy filings. A complementary instrumental variables analysis using loan-level data yields similar results. We find suggestive evidence that the ease of receiving a Lending Club loan causes some borrowers to overextend themselves financially, leading to bankruptcy. Our results suggest that recent initiatives from online lending platforms to control how borrowers use loans, such as Lending Club’s “balance transfer loans” that send loan funds directly to creditors, can help these platforms provide safe and affordable credit. Our study adds to the literature that examines how online platforms influence society and the economy; it contributes to the literature that examines how financial products, services, and regulations influence bankruptcy filings; and it has policy implications for online lending design and regulation. This paper was accepted by Lorin Hitt, information systems.

Does Board Independence Increase Firm Value? Evidence from Closed-End Funds

2019 ◽  
pp. 1-24
Author(s):  
Matthew E. Souther
Keyword(s):  
Instrumental Variables ◽  
Firm Value ◽  
Board Independence ◽  
Difference In Differences ◽  
Cross Sectional ◽  
Closed End Funds ◽  
The Impact ◽  
New Evidence

Researchers disagree about the impact of board independence on firm value. The disagreement generally stems from the endogenous nature of board appointments. I add new evidence to this discussion by using a sample of closed-end funds to document the value-enhancing effects of independent boards. Using cross-sectional, difference-in-differences, and instrumental variables techniques, I address these endogeneity concerns and find consistent evidence that board independence is associated with higher firm value.

Examining the Impact of Individual, Community, and Market Factors on Methamphetamine Use: A Tale of Two Cities

2005 ◽  
Vol 35 (4) ◽  
pp. 665-693 ◽  
Author(s):  
Nancy Rodriguez ◽  
Charles Katz ◽  
Vincent J. Webb ◽  
David R. Schaefer
Keyword(s):  
Drug Market ◽  
Community Level ◽  
Policy Implications ◽  
Individual Level ◽  
Methamphetamine Use ◽  
Level Data ◽  
Two Cities ◽  
Market Factors ◽  
The Individual ◽  
The Impact

Although prior studies have monitored the trends in methamphetamine use and reported its increase over the years, few studies have considered how community-level characteristics affect the use of methamphetamine. In this study, we utilize data from the Arrestee Drug Abuse Monitoring (ADAM) program from two cities to examine how individual-level, community-level, and drug market factors influence methamphetamine use. Results indicate that both individual and community-level data significantly influence methamphetamine use. Also, findings show that predictors of methamphetamine use (at the individual and community-level) differ significantly from marijuana, cocaine, and opiate use. Policy implications regarding law enforcement suppression and the treatment of methamphetamine users are discussed.

scholarly journals An Assessment of the Access to Credit-Welfare Nexus: Evidence from Mauritania

2017 ◽  
Vol 12 (9) ◽  
pp. 77 ◽  
Author(s):  
Alessandra Amendola ◽  
Marinella Boccia ◽  
Gianluca Mele ◽  
Luca Sensini
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Urban Areas ◽  
Credit Access ◽  
Access To Credit ◽  
Household Level ◽  
Support Strategies ◽  
Level Data ◽  
The Impact ◽  
The Relationship

This paper evaluates the impact of access to credit from banks and other financial institutions on household welfare in Mauritania. Household level data are used to evaluate the relationship between credit access, a range of household characteristics, and welfare indicators. To address the threats of potential endogeneity, an index of household isolation is used to instrument access to credit. Evidence on the validity of the exclusion restriction is provided showing that household isolation is unrelated with households and area characteristics six years prior to the measurements on which this analysis is based. Results show that households with older and more educated heads are more likely to access financial services, as are households living in urban areas. In addition, greater financial access is associated with a reduced dependence on household production and increased investment in human capital. The policy conclusions from our analysis support strategies for expanding financial infrastructures in underserved rural areas of Mauritania.

scholarly journals The Impact of Plastic Money Use on VAT Compliance: Evidence from EU Countries

2021 ◽  
Vol 239 (4) ◽  
pp. 5-26
Author(s):  
Amakoe D. Alognon ◽  
◽  
Antonios M. Koumpias ◽  
Jorge Martínez-Vázquez ◽  
◽  
...  
Keyword(s):  
European Union ◽  
Instrumental Variables ◽  
National Level ◽  
Percentage Points ◽  
Level Data ◽  
European Union Countries ◽  
Ex Ante ◽  
Spatio Temporal ◽  
The Impact ◽  
Instrumental Variables Approach

This paper examines the impact of credit and debit card usage on VAT compliance using annual national level data for 26 European Union countries from 2000 to 2016. Exploiting spatio temporal variation in plastic money use along with an instrumental variables approach, we find that a 1% increase in card payments reduces VAT gaps 0.51 percentage points whereas a 1% increase in cash withdrawals increases VAT gaps by 0.6 percentage points. Our contribution lies in using more adequate measures of VAT compliance gap and in accounting for potential confounders such as the ex-ante enforcement capacity of tax administrations.

An Empirical Assessment of the Impact of Access to Credit on Farm Output: A Case Study of Sefwi-Wiawso Municipality Ghana

2019 ◽  
Vol 6 (1) ◽  
pp. 20-33
Author(s):  
David Tanoh Aduhene ◽  
Sylvester Boadu ◽  
Ernest Obeng
Keyword(s):  
Regression Model ◽  
Financial Institutions ◽  
Primary Data ◽  
Easy Access ◽  
Switching Regression ◽  
Endogenous Switching Regression ◽  
Access To Credit ◽  
Agriculture Sector ◽  
Endogenous Switching ◽  
The Impact

The study examined the socio-demographic features of farmers and credit accessibility in the Sefwi-Wiawso Municipality Ghana. It also identifies the sources and factors influencing access to credit in the Sefwi-Wiawso Municipality. Primary data were obtained from 1,200 households and farmers within the Sefwi-Wiawso Municipal. The empirical analysis employed a logistic regression technique, the Tobit model and Endogenous Switching Regression Model (ESRM) to explore the accessibility of credit on productivity in the agriculture sector. The results revealed that age and gender are statistically significant in determining access to credit from both the logit and the endogenous regression models. The endogenous switching regression model further reveals that educational status, land ownership, access to knowledge on credit significantly influences the amount of credit received by a particular farmer within the Sefwi-Wiawso Municipality. These findings have practical implications for the modernizations of the Agriculture sector in Ghana. It is therefore important for various stakeholders to increase financial literacy among farming communities and the financial institutions to increase the credit accessibility by the Agriculture sector. It is therefore recommended that extension services provision, diversification of agriculture production and easy access to credit from financial institutions in the Municipality be established to ensure increased agriculture production.

scholarly journals The Impact of Purchase Subsidy on Enterprises’ R&D Efforts: Evidence from China’s New Energy Vehicle Industry

2020 ◽  
Vol 12 (3) ◽  
pp. 1105 ◽  
Author(s):  
Cailou Jiang ◽  
Ying Zhang ◽  
Qun Zhao ◽  
Chong Wu
Keyword(s):  
Positive Impact ◽  
Government Procurement ◽  
Policy Implications ◽  
Difference In Differences ◽  
Subsidy Rate ◽  
Multi Stage ◽  
New Energy ◽  
New Energy Vehicle ◽  
The Impact ◽  
New Energy Vehicles

Purchase subsidy has been adopted to accelerate the diffusion of New Energy Vehicles (NEVs) in China. With a Multi-stage Difference-in-Differences (DID) method, this research investigates the impact of purchase subsidy on Research and Development (R&D) efforts of NEV enterprises. The results indicate that purchase subsidy for NEVs has a positive and significant impact on R&D efforts of NEV enterprises. The impact increases when the purchase subsidy rate decreases. When considering the influences of government procurement and exemption on purchase tax, the positive impact of purchase subsidy still remains significant. The policy implications are that the purchase subsidy rate should be reduced, and stricter technological requirements should be set to couple with the purchase subsidy.

The Impact of Public and Private Research on Premature Cancer Mortality and Hospitalization in the United States, 1999-2013

2018 ◽  
Vol 63 (2) ◽  
pp. 147-165
Author(s):  
Frank R. Lichtenberg
Keyword(s):  
United States ◽  
Premature Mortality ◽  
The United States ◽  
Cancer Site ◽  
Hospital Discharges ◽  
Difference In Differences ◽  
Public And Private ◽  
Level Data ◽  
Private Research ◽  
The Impact

This article provides evidence about the impact that public and private research had on premature mortality and hospitalization due to cancer in the United States during the period 1999-2013. We estimate difference-in-differences models based on longitudinal, cancer-site-level data to determine whether the cancer sites about which more research-supported articles were published had larger subsequent reductions in premature mortality and hospitalization during the period 1999 to 2013, controlling for the change in the number of people diagnosed. Premature (before age 75 years) mortality is inversely related to the number of research-supported articles that had been published 9 to 15 years earlier, controlling for incidence and non-research publications. The number of hospital discharges attributed to cancer is also significantly inversely related to the number of research-supported articles previously published. Public and private research reduced the number of years of potential life lost before age 75 years due to cancer in 2013 by 566,000. JEL Classifications: I1, I18

scholarly journals THE IMPACT OF THE INDONESIAN TAX ADMINISTRATION REFORM ON TAX COMPLIANCE AND TAX REVENUE

2019 ◽  
Vol 27 (1) ◽  
pp. 1-24
Author(s):  
I Wayan Agus Eka
Keyword(s):  
Tax Compliance ◽  
Fixed Effect Model ◽  
Policy Implications ◽  
Tax Revenue ◽  
Tax Administration ◽  
Effect Model ◽  
Level Data ◽  
Directorate General ◽  
Input Side ◽  
The Impact

This study investigated the impact of the Indonesian tax administration reform on tax compliance and tax revenue. I used merged provincial-level data obtained from two main sources: Directorate General of Taxes (DGT) and Indonesia Statistic, and I applied multiple regressions with a fixed-effect model. I find that individual taxpayer compliance was positively affected by the tax administration reform. Tax revenue, however, was negatively affected by the tax administration reform due to DGT’s productivity problem meaning that tax potency variables did not affect tax revenue after the tax administration reform was completed. The findings identify several areas for improvements and suggest several policy implications. First, improving administration in Small Taxpayer Office (STO) especially for individual taxpayers is needed. Second, tax revenue strategy focusing on individual taxpayers is needed to materialize improvement in individual taxpayer compliance into tax revenue. Third, problem in productivity suggests that DGT should improve its input side by improving law enforcement, widening delegated authority, and increasing budget allocation.

scholarly journals COVID-19 Outbreak and Voluntary Demand for Non-COVID-19 Healthcare: Evidence from Taiwan

2020 ◽  
Author(s):  
Yung-Yu Tsai ◽  
Tzu-Ting Yang
Keyword(s):  
Demand Response ◽  
Human Mobility ◽  
Prevention Measures ◽  
Healthcare Use ◽  
Difference In Differences ◽  
Outpatient Visits ◽  
Level Data ◽  
Taiwan National Health Insurance ◽  
Substantial Decline ◽  
The Impact

AbstractThis paper examines the impact of the COVID-19 outbreak on voluntary demand for Non-COVID-19 healthcare. We use 2014–2020 weekly county-level data from Taiwan National Health Insurance alongside a difference-in-differences design. Our results indicate that even if there are no government restrictions on human mobility, people spontaneously reduce their demand for healthcare due to fears of infection or improved health status. On average, the number of outpatient visits (inpatient admissions) decreased by 18% (9%) after COVID-19 outbreak. Furthermore, the demand response of healthcare for infectious diseases (e.g. flu) is much greater and more persistent than for other diseases, suggesting that the substantial decline in healthcare use is induced by positive public-health externality of prevention measures for COVID-19.

scholarly journals The Impact of Service Liberalization on Manufacturing Productivity in Indonesia

2021 ◽  
Vol 19 (1) ◽  
pp. 1-16
Author(s):  
Wulan Oktabriyantina ◽  
Maddaremmeng Andi Panennungi
Keyword(s):  
Instrumental Variables ◽  
Service Sector ◽  
Positive Impact ◽  
Fixed Effect Model ◽  
Service Market ◽  
Firm Level ◽  
Effect Model ◽  
Level Data ◽  
Manufacturing Productivity ◽  
The Impact

This study examined the impact of service liberalization on manufacturing productivity firms in Indonesia through mode three (commercial presence) during 2006–2014. It used firm-level data sourced from the manufacturing census published by the Indonesian Bureau of Statistic (BPS). To address the problem of endogeneity in service reform, this research uses an Instrumental Variables (IV) estimation of the fixed-effect model variety and utilized two types of data (FDI and STRI OECD) to compare the result. The findings show that service liberalization in Indonesia has a positive impact on manufacturing productivity at the firm level. Furthermore, this study estimates each service sector (e.g., electricity, gas, and water; construction; transportation, warehouse, and telecommunication), the results indicated that each service had a significant impact on improving firm performance. This research suggests that reducing restrictions on the service market will improve manufacturing productivity.

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