IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v47y2022ipas1544612321005444.html
   My bibliography  Save this article

Mass shootings and peer-to-peer lending

Author

Listed:
  • García, Raffi E.
  • Li, Sen
  • Al Mahmud, Abdullah

Abstract

This paper analyzes the effect of mass shootings on peer-to-peer lending behavior. Using U.S. data from 2014–2018, we implement an event study methodology to exploit the quasi-experimental nature of mass-shooting incidents on local credit markets. Our findings indicate a short-term tightening of local credit conditions (higher interest rates and lower loan amounts) immediately after a mass shooting in affected communities relative to those in non-affected communities. These findings highlight that online credit marketplaces are reactive to random local shocks of violence at the community level and their corresponding public and media attention.

Suggested Citation

  • García, Raffi E. & Li, Sen & Al Mahmud, Abdullah, 2022. "Mass shootings and peer-to-peer lending," Finance Research Letters, Elsevier, vol. 47(PA).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005444
    DOI: 10.1016/j.frl.2021.102606
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612321005444
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2021.102606?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Luca, Michael & Malhotra, Deepak & Poliquin, Christopher, 2020. "The impact of mass shootings on gun policy," Journal of Public Economics, Elsevier, vol. 181(C).
    2. Soni, Aparna & Tekin, Erdal, 2020. "How Do Mass Shootings Affect Community Wellbeing?," IZA Discussion Papers 13879, Institute of Labor Economics (IZA).
    3. Haurin, Donald R. & Brasington, David, 1996. "School Quality and Real House Prices: Inter- and Intrametropolitan Effects," Journal of Housing Economics, Elsevier, vol. 5(4), pages 351-368, December.
    4. Donald Haurin & David Brasington, 1996. "The Impact of School Quality on Real House Prices: Interjurisdictional Effects," Working Papers 010, Ohio State University, Department of Economics.
    5. Jagtiani, Julapa & Lemieux, Catharine, 2018. "Do fintech lenders penetrate areas that are underserved by traditional banks?," Journal of Economics and Business, Elsevier, vol. 100(C), pages 43-54.
    6. Bharadwaj, Prashant & Bhuller, Manudeep & Løken, Katrine V. & Wentzel, Mirjam, 2021. "Surviving a mass shooting," Journal of Public Economics, Elsevier, vol. 201(C).
    7. Rosenthal, Stuart S. & Ross, Amanda, 2010. "Violent crime, entrepreneurship, and cities," Journal of Urban Economics, Elsevier, vol. 67(1), pages 135-149, January.
    8. Brodeur, Abel & Yousaf, Hasin, 2019. "The Economics of Mass Shootings," IZA Discussion Papers 12728, Institute of Labor Economics (IZA).
    9. Laporte, Audrey & Windmeijer, Frank, 2005. "Estimation of panel data models with binary indicators when treatment effects are not constant over time," Economics Letters, Elsevier, vol. 88(3), pages 389-396, September.
    10. Thaler, Richard, 1978. "A note on the value of crime control: Evidence from the property market," Journal of Urban Economics, Elsevier, vol. 5(1), pages 137-145, January.
    11. Kristle Romero Cortes, 2014. "Rebuilding after Disaster Strikes: How Local Lenders Aid in the Recovery," Working Papers (Old Series) 1428, Federal Reserve Bank of Cleveland.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grodecka, Anna & Hull, Isaiah, 2019. "The Impact of Local Taxes and Public Services on Property Values," Working Paper Series 374, Sveriges Riksbank (Central Bank of Sweden).
    2. Isaiah Hull & Anna Grodecka-Messi, 2022. "Measuring the Impact of Taxes and Public Services on Property Values: A Double Machine Learning Approach," Papers 2203.14751, arXiv.org.
    3. Rakesh Banerjee & Tushar Bharati, 2021. "Mass shootings and Infant Health in the United States," HiCN Working Papers 346, Households in Conflict Network.
    4. Robert T. Greenbaum & George E. Tita, 2004. "The Impact of Violence Surges on Neighbourhood Business Activity," Urban Studies, Urban Studies Journal Limited, vol. 41(13), pages 2495-2514, December.
    5. Hua, Nan & Yang, Yang, 2017. "Systematic effects of crime on hotel operating performance," Tourism Management, Elsevier, vol. 60(C), pages 257-269.
    6. David Brasington & Don Haurin, 2005. "Capitalization of Parent, School, and Peer Group Components of School Quality into House Price," Departmental Working Papers 2005-04, Department of Economics, Louisiana State University.
    7. Theodore M. Crone, 2006. "Capitalization of the quality of local public schools: what do home buyers value?," Working Papers 06-15, Federal Reserve Bank of Philadelphia.
    8. Firpo, Sergio & Ponczek, Vladimir & Possebom, Vítor Augusto, 2014. "Private Education Market, Information on Test Scores and Tuition Practices," IZA Discussion Papers 8476, Institute of Labor Economics (IZA).
    9. Han-Jang No & Dai-Won Kim & Jung-Suk Yu, 2017. "Do Reserve Prices Yield Reference Price Effects in Korean Court Auctions of Residential Real Estate?," International Real Estate Review, Global Social Science Institute, vol. 20(1), pages 75-104.
    10. Muñoz-Morales, Juan & Singh, Ruchi, 2023. "Do school shootings erode property values?," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    11. Vanags Jānis & Geipele Ineta & Usenieks Didzis & Sarkans Auseklis, 2017. "Housing Heterogeneity Dimensions and Their Elements: a Systemic Approach," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 5(1), pages 23-37, November.
    12. David C. Wheeler & Antonio Páez & Jamie Spinney & Lance A. Waller, 2014. "A Bayesian approach to hedonic price analysis," Papers in Regional Science, Wiley Blackwell, vol. 93(3), pages 663-683, August.
    13. Steven C Bourassa & Martin Hoesli & Louis Merlin & John Renne, 2021. "Big data, accessibility and urban house prices," Urban Studies, Urban Studies Journal Limited, vol. 58(15), pages 3176-3195, November.
    14. John Glen & Joseph G. Nellis, 2010. "“The Price You Pay”: The Impact of State-Funded Secondary School Performance on Residential Property Values in England," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(4), pages 405-428, December.
    15. Eli Beracha & William G. Hardin, 2021. "The housing price premium associated with charter schools," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1267-1289, December.
    16. Donald Vandegrift & Amanda Lockshiss & Michael Lahr, 2012. "Town versus Gown: The Effect of a College on Housing Prices and the Tax Base," Growth and Change, Wiley Blackwell, vol. 43(2), pages 304-334, June.
    17. Melser, Daniel & Moallemi, Morteza & Kim, Jun Sung, 2021. "Preferences for single-sex schools: Evidence from the housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 710-726.
    18. David Mayston, 2007. "Competition And Resource Effectiveness In Education," Manchester School, University of Manchester, vol. 75(1), pages 47-64, January.
    19. Dhar, Paramita & Ross, Stephen L, 2012. "School district quality and property values: Examining differences along school district boundaries," Journal of Urban Economics, Elsevier, vol. 71(1), pages 18-25.
    20. David M. Brasington, 2002. "The Demand for Local Public Goods: The Case of Public School Quality," Public Finance Review, , vol. 30(3), pages 163-187, May.

    More about this item

    Keywords

    FinTech; Mass shooting; Peer-to-peer lending; Access to credit; Crowdfunding;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G50 - Financial Economics - - Household Finance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005444. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.