Banking deregulation and household consumption of durables

Evren Damar, Ian Lange, Caitlin McKennie and Mirko Moro

No 18/2020, IWH Discussion Papers from Halle Institute for Economic Research (IWH)

Abstract: We exploit the spatial and temporal variation of the staggered introduction of interstate banking deregulation across the U.S. to study the relationship between credit constraints and consumption of durables. Using the American Housing Survey from 1981 to 1993, we link the timing of these reforms with evidence of a credit expansion and household responses on many margins. We find robust evidence that households are more likely to purchase new appliances and invest in home renovations and modifications after the deregulation. These durable goods allowed households to consume less electricity and spend less time in domestic activities after the reforms.

Keywords: banking deregulation; credit constraints; energy consumption; durable goods (search for similar items in EconPapers)
JEL-codes: D12 G2 Q41 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-ene and nep-fdg
Note: A completely revised version of this paper has been published as Damar, H. Evren; Lange, Ian; McKennie, Caitlin; Moro, Mirko: Banking Deregulation and Consumption of Home Durables. IWH Discussion Papers 4/2022. Halle (Saale) 2021. http://hdl.handle.net/10419/249744
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/225082/1/1735711136.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:182020

Access Statistics for this paper

More papers in IWH Discussion Papers from Halle Institute for Economic Research (IWH) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().