Simultaneous borrowing limitations are split into two factors: the restriction on absolute amount of loans, while the limitation for the true range loans per loan provider. In regression analysis both these are collapsed into binary factors. These factors make the worth 1 in the event that continuing state limits customers to at least one loan at any given time, and 0 otherwise. This means that states customers that are limiting a couple of loans at any given time are thought comparable to states without any restriction. This decision had been built in light for the proven fact that in states without any restriction its uncommon to borrow significantly more than two loans at the same time; consequently, a limitation of two loans is not likely to be binding on numerous clients.
For states when the rollover restriction is stated in months in the place of within the quantity of renewals, 14 days is recognized as equal to 1 renewal. In regression analysis the rollover variable is collapsed as a binary corresponding to 1 if rollovers are totally forbidden, and 0 if some form of rollover is allowed (regardless if it takes the main concept become paid off).