Financial Repression in a Natural Experiment: Loan Allocation and the Change in the Usury Laws in 1714

If financial deepening aids economic growth, then financial repression should be harmful. We use a natural experiment – the change in the English usury laws in 1714 – to analyze the effects of interest rate restrictions. We use a sample of individual loan transactions to demonstrate how the reduction of the legal maximum rate of interest affected the supply and demand for credit. Average loan size and minimum loan size increased strongly, and access to credit worsened for those with little ‘social capital.’ While we have no direct evidence that loans were misallocated, the discontinuity in loan receipts makes this highly likely. We conclude that financial repression can undermine the positive effects of financial deepening.

Interest rate restrictions in a natural experiment: loan allocation and the change in the usury laws in 1714

This article studies the effects of interest rate restrictions on loan allocation. The British governmenttightened the usury laws in 1714, reducing the maximum permissible interest rate from 6% to5%. A sample of individual loan transactions reveals that average loan size and minimum loan sizeincreased strongly, while access to credit worsened for those with little social capital. Collateralisedcredits, which had accounted for a declining share of total lending, returned to their former role ofprominence. Our results suggest that the usury laws distorted credit markets significantly; we findno evidence that they offered a form of Pareto-improving social insurance.

State usury ceilings : hearings before the Subcommittee on Financial Institutions, Supervision, Regulation and Insurance of the Committee on Banking, Finance and Urban Affairs, House of Representatives, Ninety-sixth Congress, first session, on H.R. 2515 ... April 3 and 5, 1979.

Cover title.

To authorize a national usury ceiling : hearings before the Subcommittee on Domestic Monetary Policy of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, Ninety-seventh Congress, second session, August 19 and September 28, 1982.

Item 1013-A, 1013-B (microfiche)

The Speed of the Financial Revolution: Evidence from Hoare’s Bank

Finance is important for development, yet the onset of modern economic growth in Britain lagged the British financial revolution by over a century. We present evidence from a new West-End London private bank to explain this delay. Hoare’s Bank loaned primarily to a highly select and well-born clientele, although it did not discriminate against “unknown” borrowers in the early 18th century. It could not extend credit more generally because of government restrictions (usury limits) and policies (frequent wars). Britain’s financial development could have aided growth substantially, had it not been for the rigidities and turmoil introduced by government interference.

Private borrowing during the financial revolution: Hoare’s Bank and its customers, 1702-1724

The financial revolution improved the British government s ability to borrow, andthus its ability to wage war. North andWeingast argued that it also permitted privateparties to borrow more cheaply and widely.We test these inferences with evidencefrom a London bank.We confirm that private bank credit was cheap in the earlyeighteenth century, but we argue that it was not available widely. Importantly, thegovernment reduced the usury rate in 1714, sharply reducing the circle of privateclients that could be served profitably.

Payment of interest on public demand deposits : hearings before the Committee on Banking, Housing and Urban Affairs, United States Senate, Ninety-fourth Congress, second session, on S. 3163 ... H.R. 3035 ... July 20 and 21, 1976.

Mode of access: Internet.

Report of the Special Committee of the House of Representative Appointed to Investigate the Authorship of Certain Papers Sent to Banks ... [microform] : with an appendix containing proceedings in House of Representatives on said bill.

Includes index.

Praelectiones academicae in duos tit[ulos] singulares iuris canonici : I. De decimis, primitijs, & oblationibus, II. De usuris in quo & de Antichresi & censibus siue reditibus annuis : omnia in certa capita lectoris gratia coniecta /

Signatures: asterisk² 3A-3Y⁸ 3Z¹² 4A-5G⁸5H⁴ (3Z12, 5H4 blank)

Periodic-orbit analysis and scaling laws of intermingled basins of attraction in an ecological dynamical system

Chaotic dynamical systems with two or more attractors lying on invariant subspaces may, provided certain mathematical conditions are fulfilled, exhibit intermingled basins of attraction: Each basin is riddled with holes belonging to basins of the other attractors. In order to investigate the occurrence of such phenomenon in dynamical systems of ecological interest (two-species competition with extinction) we have characterized quantitatively the intermingled basins using periodic-orbit theory and scaling laws. The latter results agree with a theoretical prediction from a stochastic model, and also with an exact result for the scaling exponent we derived for the specific class of models investigated. We discuss the consequences of the scaling laws in terms of the predictability of a final state (extinction of either species) in an ecological experiment.

Conservation laws, integrability, and transport in one-dimensional quantum systems

In integrable one-dimensional quantum systems an infinite set of local conserved quantities exists which can prevent a current from decaying completely. For cases like the spin current in the XXZ model at zero magnetic field or the charge current in the attractive Hubbard model at half filling, however, the current operator does not have overlap with any of the local conserved quantities. We show that in these situations transport at finite temperatures is dominated by a diffusive contribution with the Drude weight being either small or even zero. For the XXZ model we discuss in detail the relation between our results, the phenomenological theory of spin diffusion, and measurements of the spin-lattice relaxation rate in spin chain compounds. Furthermore, we study the Haldane-Shastry model where a conserved spin current exists.

Concentration inequalities and laws of large numbers under epistemic and regular irrelevance

This paper presents concentration inequalities and laws of large numbers under weak assumptions of irrelevance that are expressed using lower and upper expectations. The results build upon De Cooman and Miranda`s recent inequalities and laws of large numbers. The proofs indicate connections between the theory of martingales and concepts of epistemic and regular irrelevance. (C) 2010 Elsevier Inc. All rights reserved.