That presumption could be violated, as an example, if Ca had skilled the original source a job-market that is uniquely robust throughout the study period.
As stated above, the assumption that is key the difference-in-differences framework on which we relied is the fact that CaliforniaвЂ™s expansion counties and all sorts of regarding the nonexpansion counties might have shown comparable styles when you look at the lack of the expansion. Having said that, we have been conscious of no proof that the job-market data recovery in Ca had been not the same as the data recovery in other states in a manner that would influence borrowing that is payday. But, more crucial, Appendix Exhibit A8 shows the right time styles in amounts of loans both before and following the expansion. 16 Reassuringly, the display shows that there have been no differences that are observable future expanding and nonexpanding counties in preexisting time styles, which validates the parallel-trends assumption that underlies our difference-in-differences approach. (suite…)