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Does discrimination in lending still persist?

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  • Harold A Black

    (University of Tennessee)

Abstract

A common perception is that lending discrimination on the basis of race exists. Whether that perception is correct has been the subject for legislative and regulatory actions and of empirical studies by economic researchers. Some studies have found evidence of lending discrimination while others have noted its absence. However, one would logically assume that if discrimination were to have occurred it would be more likely before the legislative and regulatory scrutiny rather than after. Therefore, if lending discrimination did once occur, the question arises as to whether lending discrimination still persists. An additional question is that if discrimination still persists, then is it intentional? If the regulators examined for lending discrimination and it still exists, then the question arises whether such actions by the lender is rational.

Suggested Citation

  • Harold A Black, 2023. "Does discrimination in lending still persist?," Public Choice, Springer, vol. 197(3), pages 325-333, December.
    • Handle: RePEc:kap:pubcho:v:197:y:2023:i:3:d:10.1007_s11127-023-01080-x
    DOI: 10.1007/s11127-023-01080-x
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    References listed on IDEAS

    as
    1. White, Joshua T. & Woidtke, Tracie & Black, Harold A. & Schweitzer, Robert L., 2014. "Appointments of academic directors," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 135-151.
    2. Robert F. Phillips & Robert P. Trost & Anthony M.J. Yezer, 1994. "Bias in estimates of discrimination and default in mortgage lending: the effects of simultaneity and self-selection," Proceedings, Federal Reserve Bank of Philadelphia, pages 197-222.
    3. Black, Harold A. & Boehm, Thomas P. & DeGennaro, Ramon P., 2003. "Is there discrimination in mortgage pricing? The case of overages," Journal of Banking & Finance, Elsevier, vol. 27(6), pages 1139-1165, June.
    4. Munnell, Alicia H. & Geoffrey M. B. Tootell & Lynn E. Browne & James McEneaney, 1996. "Mortgage Lending in Boston: Interpreting HMDA Data," American Economic Review, American Economic Association, vol. 86(1), pages 25-53, March.
    5. Ayres, Ian & Siegelman, Peter, 1995. "Race and Gender Discrimination in Bargaining for a New Car," American Economic Review, American Economic Association, vol. 85(3), pages 304-321, June.
    6. Black, Harold & Schweitzer, Robert L & Mandell, Lewis, 1978. "Discrimination in Mortgage Lending," American Economic Review, American Economic Association, vol. 68(2), pages 186-191, May.
    7. Harold A. Black & Robert L. Schweitzer, 1985. "Black-Controlled Credit Unions: A Comparative Analysis," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 8(3), pages 193-202, September.
    8. HAROLD Black & M. Collins & Ken Cyree, 1997. "Do Black-Owned Banks Discriminate against Black Borrowers?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 11(1), pages 189-204, February.
    9. Black, Harold, 1978. "Inflation and the Issue of Unidirectional Causality: A Note," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 10(1), pages 99-101, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    G21; G18; G28; J15;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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