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

Author

Listed:
  • Valentina Dimitrova-Grajzl

    (Virginia Military Institute
    Federal Reserve Bank of Minneapolis)

  • Peter Grajzl

    (Federal Reserve Bank of Minneapolis
    Washington and Lee University
    CESifo)

  • A. Joseph Guse

    (Federal Reserve Bank of Minneapolis
    Washington and Lee University)

  • Richard M. Todd

    (Federal Reserve Bank of Minneapolis)

  • Michael Williams

    (Federal Reserve Bank of Minneapolis)

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.

Suggested Citation

  • Valentina Dimitrova-Grajzl & Peter Grajzl & A. Joseph Guse & Richard M. Todd & Michael Williams, 2018. "Neighborhood Racial Characteristics, Credit History, and Bankcard Credit in Indian Country," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 60(3), pages 410-441, September.
    • Handle: RePEc:pal:compes:v:60:y:2018:i:3:d:10.1057_s41294-018-0064-6
    DOI: 10.1057/s41294-018-0064-6
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    More about this item

    Keywords

    Bankcard credit; American Indian reservations; Discrimination; Neighborhood racial characteristics; Credit history;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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