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Credit supply and household long-term well-being: Evidence from banking deregulation

Author

Listed:
  • Kim, Daniel Sungyeon
  • Lee, Jaeyoon
  • Choi, Bong-Geun
Abstract
This study examines how credit supply affects a household’s long-term subjective well-being, measured by suicide deaths. Using the banking deregulation in the U.S. as a quasi-natural experiment, we find that enhanced credit supply reduces households’ suicide deaths. The effects are more remarkable in the areas with higher income inequality and higher financial literacy. Overall, our results highlight the real effects of credit conditions on households’ long-term subjective well-being, which has important policy implications.

Suggested Citation

  • Kim, Daniel Sungyeon & Lee, Jaeyoon & Choi, Bong-Geun, 2022. "Credit supply and household long-term well-being: Evidence from banking deregulation," Economics Letters, Elsevier, vol. 219(C).
    • Handle: RePEc:eee:ecolet:v:219:y:2022:i:c:s0165176522003111
    DOI: 10.1016/j.econlet.2022.110831
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Credit supply; Banking deregulation; Subjective well-being;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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