Alternative financial service providers and the spatial void hypothesis
This paper studies the spatial relationship between traditional banking services (Banks) and alternative financial service providers (AFSPs). The main objective is to test the so-called spatial void hypothesis that AFSPs tend to locate in markets where traditional banking services are under-provided. The key question of interest here is whether or not AFSPs serve markets with significantly lower income levels than those of Banks. One of the main contributions of this paper is to develop a statistical methodology for addressing this question that builds on previous studies. The present approach is based largely on K-function analyses of both individual and paired point patterns. These Monte Carlo testing procedures are applied to Banks and AFSPs in the four-county region around Philadelphia, Pennsylvania, and are also compared with previous methods. In contrast to previous work, the key finding of the present research is that there is indeed strong empirical support for the spatial void hypothesis in this Philadelphia region.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Duranton, Gilles & Overman, Henry G, 2002.
"Testing for Localization Using Micro-Geographic Data,"
CEPR Discussion Papers
3379, C.E.P.R. Discussion Papers.
- Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 1077-1106.
- Gilles Duranton & Henry Overman, 2002. "Testing for Localisation Using Micro-Geographic Data," CEP Discussion Papers dp0540, Centre for Economic Performance, LSE.
- Gilles Duranton & Henry G. Overman, 2005. "Testing for localization using micro-geographic data," LSE Research Online Documents on Economics 581, London School of Economics and Political Science, LSE Library.
- Gilles Duranton & Henry G. Overman, 2002. "Testing for localisation using micro-geographic data," LSE Research Online Documents on Economics 20071, London School of Economics and Political Science, LSE Library.
- Duranton, Gilles & Henry G Overman, 2003. "Testing for Localisation Using Micro-Geographic Data," Royal Economic Society Annual Conference 2003 69, Royal Economic Society.
- Kulldorff, Martin, 2006. "Tests of Spatial Randomness Adjusted for an Inhomogeneity: A General Framework," Journal of the American Statistical Association, American Statistical Association, vol. 101, pages 1289-1305, September.
- Burkey, Mark L. & Simkins, Scott P., 2004.
"Factors affecting the location of payday lending and traditional banking services in North Carolina,"
36043, University Library of Munich, Germany.
- Burkey, Mark L. & Simkins, Scott P., 2004. "Factors Affecting the Location of Payday Lending and Traditional Banking Services in North Carolina," The Review of Regional Studies, Southern Regional Science Association, vol. 34(2), pages 191-205.
- Mark Flannery & Katherine Samolyk, 2005. "Payday lending: do the costs justify the price?," Proceedings 949, Federal Reserve Bank of Chicago.
When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:38:y:2008:i:3:p:205-227. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.