Plausibly Exogenous [1945] - Usury (05/31/2025)

LHS Variable
Loan amounts and default probability

RHS Variable
Usury laws

Source of Exogenous Variation
Sudden change in interest rate caps due to a behind-the-scenes change in loan origination

- Rigbi (2013), “The Effects of Usury Laws: Evidence from the Online Loan Market”