CLEMSON, S.C. –( COMPANY WIRE )–Payday loans don’t cause bankruptcy, based on a current research by economists at Clemson University.
Dr. Petru S. Stoianovici and Prof. Michael T. Maloney learned the connection between payday bankruptcy and lending filings throughout the duration from 1990 to 2006. Making use of data that are state-level the legality of payday lending as well as on how many loan shops, the detectives found that neither the legality of payday financing nor a rise in the amount of loan shops resulted in greater prices of customer bankruptcies.
Relating to Dr. Stoianovici, he and Prof. Maloney learned the results of payday-lending legislation and of the amounts of payday-loan stores at the beginning of years on a bankruptcy proceeding filing prices in subsequent years. Their research utilized two various techniques that are analytical neither of which discovered any relationship between payday financing and bankruptcy rates. One of many strategies, called Granger causality evaluation, is specifically made to check whether one phenomenon may be stated resulting in another occurring in a subsequent duration.
The findings regarding the research are in keeping with those of other detectives — including Dr.