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Banking deregulation and consumption of home durables

Author

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  • Damar, H. Evren
  • Lange, Ian
  • McKennie, Caitlin
  • Moro, Mirko

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 1989, we link the timing of these reforms with evidence of a credit expansion and household responses on many margins. We find evidence that low-income households are more likely to purchase new appliances after the deregulation. These durable goods allowed households to consume less natural gas and spend less time in domestic activities after the reforms.

Suggested Citation

  • Damar, H. Evren & Lange, Ian & McKennie, Caitlin & Moro, Mirko, 2022. "Banking deregulation and consumption of home durables," IWH Discussion Papers 4/2022, Halle Institute for Economic Research (IWH).
  • Handle: RePEc:zbw:iwhdps:42022
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    More about this item

    Keywords

    banking deregulation; credit constraints; energy consumption; durable goods;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • G2 - Financial Economics - - Financial Institutions and Services
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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