Abstract
Using a unique, multistate data set and exploiting policy heterogeneity across states and time, I examine average and marginal effects of changing payday-lending policies on county-month-level branch counts between January 2001 and December 2010. Average results on operating branches are mixed: the effects of adopting liquidity requirements and fee ceilings are negative while the effects of adopting balance and rollover limits are positive. Adopting balance limits decreases new branch counts. Marginal effects of relaxing rollover ceilings are positive for operating branches, though negative for new branches. Results highlight the need to consider both consumer- and producer-interest perspectives when examining the relationship between industry and regulation. (JEL L22, G28, D22)