Nondepository Credit Intermediation and its Effects on the Financial Well-Being of Consumers

Simpson, Nathan (2016) Nondepository Credit Intermediation and its Effects on the Financial Well-Being of Consumers. Undergraduate thesis, under the direction of Mark Van Boening from Economics, The University of Mississippi.

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This paper investigates whether the availability of consumer loans has a positive or negative effect on the indicators of financial well being for consumers in the same area. By observing the number of consumer lending establishments and regressing those numbers on financial indicators, such as percent in poverty and median household income, this paper observes any statistically significant correlations that arise out of the presence of these establishments as well as the sign (positive or negative) of the correlation. The data period is 2007 to 2013. This process is used for nationwide numbers as well as six selected Southern states. For those states, current laws and regulations are reviewed to determine if state law can have any effect on the availability of this type of credit. Results show a limited number of statistically significant relationships in the years after the 2008-2009 financial crisis. The financial well-being variables are percent in poverty, median household income, and Chapter 7 bankruptcy filings. The results indicate some positive and some negative correlations between establishments and the financial indicators. The lack of statistical significance in these regressions indicates that there must be some correlations in the U.S. that differ fundamentally from the southern states studied, a topic worthy of future study.

Item Type: Thesis (Undergraduate)
Creators: Simpson, Nathan
Student's Degree Program(s): B.A. in Economics and English
Thesis Advisor: Mark Van Boening
Thesis Advisor's Department: Economics
Institution: The University of Mississippi
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
K Law > K Law (General)
Depositing User: Nathan Simpson
Date Deposited: 13 May 2016 13:58
Last Modified: 13 May 2016 13:58

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