A multiple regression analysis of survey data was carried out to evaluate the extent and
form of price differentials in Chicago currency exchanges. These institutions, which
are partially regulated by the state, cash checks, write money orders, and remit utility
payments in return for small service fees. The results showed that there were price
differentials for obtaining financial services of small value (under $200), with higher prices
being charged in Latmo and Black neighborhoods. The inclusion of interaction terms
for ethnic composition, however, demonstrated that the form of the pricing function
was relatively constant across neighborhoods.
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