Limitations on simultaneous borrowing

Limitations on simultaneous borrowing

Simultaneous borrowing restrictions are split into two factors: the restriction on absolute wide range of loans, plus the restriction regarding the true quantity of loans per loan provider. Both of these are collapsed into binary variables in regression analysis. These variables simply take the worth 1 in the event that continuing state limits customers to 1 loan at any given time, and 0 otherwise. Which means that states customers that are limiting a couple of loans at the same time are considered equal to states without any restriction. Read More