Suchergebnisse

AbstractWe study access to banking and how it is related to banks' rate of return on investments and the distribution of income. We develop our empirical framework through a theoretical supply-side model of bank deposit services with a consumer population heterogeneous in income. We use this model to show how decreases in the interest rate margin and higher income disparities lead to an increase in the proportion of unbanked. Using localized US household data from 2009, 2011, 2013 and 2015 we find strong empirical evidence for the predictions of the model. We then structurally estimate our model to estimate the value of having a checking account relative to alternative financial services and to quantify the effects of actual changes in the interest rate margin and the distribution of income that occurred in the aftermath of the 2008 financial crisis.

AbstractIn the NBA, predominantly Black players play in front of predominantly non-Black fans. Using the "NBA Bubble", a natural experiment induced by COVID-19, we show that the performance of Black players improved significantly with the absence of fans vis-à-vis White players. This is consistent with Black athletes being negatively affected by racial pressure from mostly non-Black audiences. We control for player, team, and game fixed effects, and dispel alternative mechanisms. Beyond hurting individual players, racial pressure causes significant economic damage to NBA teams by lowering the performance of top athletes and the quality of the game.