Neighborhood Racial Characteristics, Credit History, and Bankcard Credit in Indian Country

32 Pages Posted: 9 Aug 2018

See all articles by Peter Grajzl

Peter Grajzl

Washington and Lee University - Department of Economics; CESifo

Valentina P. Dimitrova-Grajzl

Virginia Military Institute

A. Joseph Guse

Washington and Lee University - Williams School of Commerce, Economics, and Politics

Richard M. Todd

affiliation not provided to SSRN

Michael Williams

Federal Reserve Banks - Federal Reserve Bank of Minneapolis

Multiple version iconThere are 3 versions of this paper

Date Written: April 2018

Abstract

We draw on a large-scale dataset of individual-level credit bureau records to study bankcard credit limits in Indian Country. Utilizing approaches that aim to isolate supply from demand considerations, we find that residing in a predominantly American Indian neighborhood is ceteris paribus associated with lower awarded bankcard credit limits than residing in a neighborhood where the share of American Indian residents is low. Consumer’s credit history is a robust and quantitatively more important predictor of awarded credit limits than racial composition of the consumer’s neighborhood. Bankcard credit limits do not depend on the consumer’s location vis-à-vis a reservation.

Keywords: Bankcard credit, American Indian reservations, Discrimination, Neighborhood racial characteristics, Credit history

Suggested Citation

Grajzl, Peter and Dimitrova-Grajzl, Valentina P. and Guse, A. Joseph and Todd, Richard and Williams, Michael, Neighborhood Racial Characteristics, Credit History, and Bankcard Credit in Indian Country (April 2018). Comparative Economic Studies, Vol. 60, Issue 3, 2018. Available at SSRN: https://ssrn.com/abstract=3228548 or http://dx.doi.org/10.1057/s41294-018-0064-6

Peter Grajzl

Washington and Lee University - Department of Economics ( email )

Lexington, VA 24450
United States

HOME PAGE: http://home.wlu.edu/~grajzlp/

CESifo ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Valentina P. Dimitrova-Grajzl (Contact Author)

Virginia Military Institute ( email )

Department of Economics and Business
Scott Shipp Hall
Lexington, VA 24450
United States

A. Joseph Guse

Washington and Lee University - Williams School of Commerce, Economics, and Politics ( email )

Lexington, VA 24450
United States

Richard Todd

affiliation not provided to SSRN

Michael Williams

Federal Reserve Banks - Federal Reserve Bank of Minneapolis ( email )

90 Hennepin Avenue
Minneapolis, MN 55480
United States

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