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Usury laws and Private Credit in Lima, Peru. Evidence from notarized contracts

Author

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  • Luis Felipe Zegarra

    (CENTRUM Católica Graduate Business School)

Abstract

This article analyzes the effects of usury laws in the credit market of Lima in 1825-49. By relying on a sample of more than 1,100 notarized records, the article shows that the repeal of colonial anti-usury laws in early 1833 led to the increase in interest rates and to a greater access to credit. Furthermore, lenders made loans with greater maturities after the repeal of usury laws.

Suggested Citation

  • Luis Felipe Zegarra, 2016. "Usury laws and Private Credit in Lima, Peru. Evidence from notarized contracts," Working Papers 2016-65, Peruvian Economic Association.
  • Handle: RePEc:apc:wpaper:2016-065
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Mortgage credit; usury laws; interest rates; access to credit; Latin America;

    JEL classification:

    • N2 - Economic History - - Financial Markets and Institutions
    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
    • N46 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Latin America; Caribbean
    • K1 - Law and Economics - - Basic Areas of Law

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