Limits on simultaneous borrowing. Minimum term restrictions
Minimal term restrictions
A standard pay period of 2 weeks is assumed for states that set the minimum term limit in terms of pay periods rather than days. As an example, Virginia’s limitation of 2 pay durations is coded as 28 times.
Optimum term limitations
States without any maximum term restrictions are coded as having a limitation corresponding to their state aided by the greatest appropriate restriction, that will be 60 days for Kentucky.
Limitations on simultaneous borrowing
Simultaneous borrowing restrictions are divided in to two factors: the restriction on absolute amount of loans, together with limitation associated with amount of loans per loan provider. Both of these are collapsed into binary variables in regression analysis. These factors simply take the worthiness 1 in the event that continuing state limits clients to a single loan at the same time, and 0 otherwise.