Michael E. Staten

Debit, Credit, or Cash: Survey Evidence on Gasoline Purchases

Abstract We analyzed the consumer’s payment option to use debit, general purpose credit cards, gasoline credit cards, or cash. Based on the results from a nested multinomial logit model, we found consumers are more likely to use cash when they have less education, lower incomes, are middle-aged, and own fewer credit cards. Debit and credit card users are younger, more educated, and hold more credit cards. Respondents who use their debit card are less likely to use their gasoline credit card. The results suggest that greater debit card usage will place the greatest competitive pressure on the gasoline credit card program.

Regulation of Subprime Mortgage Products: An Analysis of North Carolina's Predatory Lending Law

This paper estimates the effect of North Carolinas high-cost mortgage law on the subprime mortgage market in that state. The results indicate that creditors sharply restricted lending to higher risk consumers in North Carolina following passage of the law. Creditors did not restrict lending in neighboring states or to lower risk consumers in North Carolina. These results suggest that the restriction in North Carolina was due to rationing in response to higher costs imposed by the law. The findings of this study are of importance beyond North Carolina. Other states and municipalities have proposed or passed similar or more restrictive laws. These laws risk taking back some of the gains in credit availability that lower income and higher risk consumers gained in the 1990s.

The impact of public policy on consumer credit

Preface. 1. Introduction T.A. Durkin, M.E. Staten. 2. The Evolution of Consumer Credit In the United States L. Calder. 3. The Growth of Consumer Credit and the Household Debt Service Burden D.M. Maki. 4. Personal Bankruptcies C.A. Luckett. 5. Disclosure as a Consumer Protection T.A. Durkin, G. Elliehausen. 6. Financial Literacy in the U.S. and Efforts toward Credit Education L. Mandell. 7 Trends in Equal Access to Credit Products R.W. Bostic.

Plastic choices: Consumer usage of bank cards versus proprietary credit cards

Using survey data from retail and gasoline cardholders, we examine the substitution of general purpose (bank) cards for proprietary cards and how issuers can predict which consumers are most likely to substitute. Convenience and rebates are the primary reasons for using a bank card. However, consumers use their proprietary gasoline cards to keep purchase records and proprietary retail cards to obtain better service. These results help explain the growth in popularity of “co-branded” cards.

Economic Inefficiency: A Failure of Economists

Use of the concept of economic “efficiency” to guide public policy and even the courts has become almost commonplace. The authors conclude that it is impossible, using traditional microeconomic models, to demonstrate empirically that an outcome is inefficient; they suggest an appropriate role for economics in legal analysis.

Shipping the Good Students Out: The Effect of a Fixed Charge on Student Enrollments

The usual substitution effect of a price change between goods is extended to substitution among differentiated products within a heterogeneous good in a manner useful for the introductory and intermediate courses. The example of student choice of course load is used.