Plausibly Exogenous [1844] - Rate Restrictions (02/19/2025)

LHS Variable
Loan allocation

RHS Variable
Interest rate restrictions

Source of Exogenous Variation
The British government tightened the usury laws in 1714, reducing the maximum permissible interest rate from 6% to 5%

- Temin and Voth (2008), “Interest rate restrictions in a natural experiment: Loan allocation and the change in the usury laws in 1714”