Interest Rate Restrictions in a Natural Experiment: Loan Allocation and the Change in the Usury Laws in 1714

Peter Temin; Hans-Joachim Voth

doi:10.1111/j.1468-0297.2008.02140.x

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Interest Rate Restrictions in a Natural Experiment: Loan Allocation and the Change in the Usury Laws in 1714

Peter Temin, Hans-Joachim Voth

Economic Journal 118, pp. 743-758 (2008)

Published version

Abstract

This article studies the effects of interest rate restrictions on loan allocation. The British government tightened the usury laws in 1714, reducing the maximum permissible interest rate from 6% to 5%.

Keywords: usury laws, interest rates, credit rationing, natural experiment, financial history
DOI: 10.1111/j.1468-0297.2008.02140.x
Canonical: https://www.jvoth.com/papers/interest-rate-restrictions-usury-1714.html

Peter Temin, Hans-Joachim Voth (2008). “Interest Rate Restrictions in a Natural Experiment: Loan Allocation and the Change in the Usury Laws in 1714.” Economic Journal.