Measuring the Likelihood of Small Business Loan Default: Community Development Financial Institutions (CDFIs) and the use of Credit-Scoring to Minimize Default Risk1
By Andrea Coravos
Community development financial institutions (CDFIs) provide financial services to underserved markets and populations. Using small business loan portfolio data from a national CDFI, this paper identifies the specific borrower, lender, and loan characteristics and changes in economic conditions that increase the likelihood of default. These results lay the foundation for an in-house credit-scoring model, which could decrease the CDFI’s underwriting costs while maintaining their social mission. Credit-scoring models help CDFIs quantify their risk, which often allows them to extend more credit in the small business community.*
Advisor: Charles Becker | JEL Codes: K22, M1,
The Financial Impact of the Oil Pollution Act: Do the Penalties Resulting from Oil Spills Fulfill the Purpose of the OPA?
by Melissa Keever
Abstract
This paper explores the financial impact of the Oil Pollution Act (OPA) on oil companies for oil spills. Total penalty per barrel, including civil and criminal penalties, and total cost per barrel for oil spills are analyzed prior OPA and post OPA. Difference-in-differences estimation is used to determine if penalties and costs for an oil spill increased post OPA in accordance with the purpose of the OPA to hold companies more financially responsible for oil spills, especially damaging ones. With the exception of criminal penalty per barrel, the analysis suggests that the OPA is not achieving the desired financial impact.
Professor Christopher Timmins, Faculty Advisor
JEL Codes: K2
Assessing Abortion The Impact of Legalized Abortion on the Welfare of American Women
by Katherine N. Fisher
Abstract
By examining data on educational attainment, workforce participation, and marriage market bargaining power, this paper assesses the impact of legalized abortion on women’s welfare. Access to abortion is found to increase education levels and employment rates. However, such access may also increase rates of sexually transmitted disease and disadvantage women in the marriage markets. Although negative implications are established, they do not appear strong enough to counteract the positive impacts of abortion access. Legalized abortion is a highly demanded public good, and seems to serve in the best interest of women by empowering them through choice.
Professor Marjorie McElroy, Faculty Advisor
JEL Codes: H3, I14, K4
