Simultaneous borrowing limitations are split into two factors: the limitation on absolute amount of loans, and also the restriction associated with the quantity of loans per loan provider. Both of these are collapsed into binary variables in regression analysis. These factors make the value 1 if the continuing state limits clients to at least one loan at any given time, and 0 otherwise. Which means that states limiting clients to several loans at any given time are thought equal to states without any limitation. This choice had been produced in light of this known proven fact that in states without any restriction it really is uncommon to borrow significantly more than two loans at any given time; consequently, a restriction of two loans is not likely to be binding on numerous clients.
For states where the rollover limitation is stated in days instead of into the quantity of renewals, 14 days is known as equal to 1 renewal.