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One method to investigate this presssing problem is by considering preperiod styles into the two categories of states.

Our empirical specification takes the after kind:

Before presenting our primary results, we measure the comparability associated with the therapy and control states. State policy toward payday advances just isn’t determined arbitrarily; the choices of legislatures or courts to permit or ban payday advances may be determined by facets which are correlated aided by the behavior of borrowers into the state. As an example, growing loan that is anti-AFS in a situation may simultaneously cause borrowers to get rid of making use of such loans and politicians to pass through legislation against them. 18

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