When Your Word Is Not Enough

Race, Collateral, and Household Credit

Bibliographic Data

ID10102256
AuthorsMartha L Olney (University of California System, corresponding author)
Year1998
Volume58
Issue2
Pages408-431
Publication date1998-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Journal of Economic History (JOURNAL)
Journal identifiersISSN: 0022-0507 • E-ISSN: 1471-6372
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0022050700020568
OpenAlexW2043801664
LanguageEN
Citations received11
References cited11

Black families included in the 1918/19 BLS Consumer Purchases Survey used installment credit more frequently and merchant credit less frequently than White families. Economic and demographic characteristics explain the racial difference for installment but not for merchant credit. I argue greater demand for installment credit by Black families was satisfied because repossession of collateral upon buyer default overcame merchants' personal prejudice with regard to creditworthiness, but absence of tangible collateral impacted the availability of merchant credit. Low use of merchant credit can account for relatively high interwar saving rates for low-income Black families

Actuarial science · Business · Collateral · Collateral damage · Credit history · Economics · Political science · Prejudice (legal term · Race (biology · Sociology · Finance · Housing Market and Economics · Housing, Finance, and Neoliberalism · Law

Tools

Open DOISci-Hub