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

초록

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. © 2022

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