Simultaneous borrowing restrictions are divided in to two factors: the limitation on absolute range loans, plus the restriction of this true quantity of loans per loan provider. In regression analysis both these are collapsed into binary factors. These variables make the value 1 in the event that state limits customers to 1 loan at any given time, and 0 otherwise. Which means states customers that are limiting a couple of loans at any given time are thought equal to states with no limitation. This choice ended up being produced in light for the known proven fact that in states without any limitation it’s uncommon to borrow a lot more than two loans at the same time; consequently, a limitation of two loans is not likely to be binding on numerous clients.