Pawnproking

Only available on StudyMode
  • Topic: Pawnbroker, Retailing, Payday loan
  • Pages : 121 (25148 words )
  • Download(s) : 73
  • Published : March 25, 2013
Open Document
Text Preview
Copyright 2007
Janice L. Francis
All Rights Reserved

I would like to dedicate this to my husband, my children and all my grandchildren for their unfailing patience and helpfulness while I worked on this dissertation.

PAWNBROKING: ORGANIZATION AND ROLE
OF AN INDUSTRY IN TRANSITION

by

JANICE L. FRANCIS, A.A., B.A., MPA

DISSERTATION
Presented to the Faculty of
The University of Texas at Dallas
in Partial Fulfillment
of the Requirements
for the Degree of

DOCTOR OF PHILOSOPHY IN
PUBLIC POLICY AND POLITICAL ECONOMY

THE UNIVERSITY OF TEXAS AT DALLAS
May 2007

A CKNOWLEDGEMENTS
I would like to thank Mark Stallo who helped me acquire a deep understanding of the how pawnshops and criminals operate and the interaction between them. I would also like to thank Frances Fass for her aid in transforming all my data into a useful form. Finally, I would like to thank Dr. Simon Fass for his aid and encouragement, without which I could never have completed this dissertation.

March 2007

v

PAWNBROKING: ORGANIZATION AND ROLE
OF AN INDUSTRY IN TRANSITION
Publication No. ___________________
Janice L. Francis, Ph.D.
The University of Texas at Dallas, 2007

Supervising Professor:

Simon M. Fass
ABSTRACT

Pawnbroking is an industry that straddles two economic domains; finance and retail trade. The business is ever evolving, exploring new ways to continue a very old service. Recent research suggests the explosive growth in pawnshop numbers over the last thirty years is directly related to the increase in the “unbanked” population as banks leave the inner-city. Literature about the industry is sparse, with much built on prior works. This research explores the factors linked to the rapid increase in shops with a combination of data derived mostly from Dallas, Texas. It is composed of data from the Dallas Police’s electronic record of all pawn transactions in Dallas between 1991 and 2001 and a random selection of pawn tickets. From those statistics, a 3000 randomly selected pawn customer list was stratified into ten frequency-of-transaction classes which allowed the development of a profile of the pawn customers. Bolstering the empirical data extracted from that source are interviews with property crime offenders, police officers and pawnbrokers. Many factors arise out of what is developed in the pooled statistics. Two of the most important are that vi

they verify that the explosive growth in pawnshops has more issues than the lack of banks in the less affluent neighborhoods as suggested by some articles; and that the traffic in stolen goods is not as miniscule as the pawn industry and many experts claim. Most significant is the legislated environment for pawn brokering. If the barriers to entry are too high or the interest rate too low for a profit, then the expansion in the number of pawnshops will be miniscule.

vii

TABLE OF CONTENTS
Acknowledgement………………………………………………………………………..v Abstract ..……………………………………………………………………………..…vi List of Tables …………………………………………………………………………....ix Chapter 1: Introduction ……………………………………………………………….….1 Chapter 2: The Origins and Development of Pawnbroking ………………………..….10 Chapter 3: The Pawn Business ………………………………………………………....18 The Texas Experience ………………………………………………………….25 A Quest for Respectability and Influence ……………………………………...32 The Future ………………………………………………………………………36 Chapter 4: The Demand for Pawnshops………………………………………………...38 The Customers in Dallas ……………………………………………………….42 Thievery…………………………………………………………………………46 Chapter 5: Recent Policy Dynamics …………………………………………………..56 Texas Legislation ………………………………………………………………60 Chapter 6: Conclusions……………………………………………………………….…66 Bibliography……………………………………………………………………………..72 Vita

viii

L IST OF TABLES
Number

Page

1. Quantity and Value of Items Pawned in Dallas, Texas: 1991-2001………………….....6 2. Pawnbroker Involvement in Theft trials at the Old Bailey, London: 1674-1834 ……..15 3. Pawnbrokers in the United States,...
tracking img