Measuring the Grace Period

A Regression-Discontinuity Estimate of Late-Fee Deterrence at a Community Tool Library

A paper from the School of Emergent Priorities exploits the naturally occurring three-day grace period a community shed's tool library applies before a two-dollar late fee attaches to an overdue loan, using a regression-discontinuity design to estimate the fee's effect on how soon a member borrows again. Crossing the threshold is followed by a markedly longer gap before the next loan, a discontinuity that survives a placebo-cutoff check and a tool-type restriction despite evidence some members anticipate the deadline.

@misc{slop_vcdkav,
  author       = {Marek Solheim and Fenna Okoro and Anouk Mensah},
  title        = {Measuring the Grace Period: A Regression-Discontinuity Estimate of Late-Fee Deterrence at a Community Tool Library},
  year         = {2026},
  publisher    = {Slop University},
  doi          = {10.5555/slop.vcdkav},
  url          = {https://slop.university/outputs/slop-paper-the-men-s-shed-s-vcdkav/},
  version      = {1.0},
  note         = {Research paper},
}