Campus Units
Finance
Document Type
Article
Publication Version
Accepted Manuscript
Publication Date
12-2019
Journal or Book Title
Journal of Financial Economics
Volume
134
Issue
3
First Page
591
Last Page
616
DOI
10.1016/j.jfineco.2019.05.006
Abstract
Early life exposure to local financial institutions increases household financial inclusion and leads to long-term improvements in consumer credit outcomes. We identify the effect of local financial markets using Congressional legislation that led to unintended differences in financial market development across Native American reservations. Individuals from financially underdeveloped reservations enter consumer credit markets later, and upon reaching adulthood, have ten point lower credit scores and four percentage point more delinquent accounts. These effects are long-lived and depreciate slowly after individuals move to more developed areas. Formative exposures to local banking improve consumer credit behavior by increasing financial literacy and financial trust.
Copyright Owner
Elsevier B.V.
Copyright Date
2019
Language
en
File Format
application/pdf
Recommended Citation
Brown, James R.; Cookson, J. Anthony; and Heimer, Rawley Z., "Growing up without finance" (2019). Finance Publication. 27.
https://lib.dr.iastate.edu/finance_pubs/27
Included in
Finance and Financial Management Commons, Indigenous Studies Commons, Place and Environment Commons, Work, Economy and Organizations Commons
Comments
This accepted article is published as Brown, J.R., Cookson, J.A., Heimer, R.Z., Growing Up Without Finance. Journal of Financial Economics, Dec 2019, 134(3);591-616. Doi: 10.1016/j.jfineco.2019.05.006. Posted with permission.