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Journal of Financial Economics Vol. 149 No. 3 2023

Deputizing financial institutions to fight elder abuse

Bruce Carlin1; Tarik Umar1; Hanyi Yi2

1 Rice University · 2 Boston College

open access

Abstract

Permissive laws deputize financial professionals to screen for misbehavior without providing explicit incentives. These are very common in financial markets. To evaluate their effectiveness, we exploit the staggered adoption of the 2016 Model Act provisions intended to curb elder abuse. We find a drop in reports of abuse by financial professionals to the Department of Treasury and, separately, in financial crimes against the elderly as monitored by the FBI . The effect is stronger where the elderly are more isolated. Our results highlight the role financial professionals play in combating social problems and the impact of permissive policies.

DOI
10.1016/j.jfineco.2023.06.004
Volume
149
Issue
3
Pages
557-577
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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