Laws, Regulations and Factor Markets

The idea in forming the new department “Laws, Regulations and Factor Markets” is the observation that the regulation of financial and labour markets are traditionally analysed separately. The new department aims to overcome this divide from the perspective of real sector development. It will achieve this objective by conducting joint research into aspects of the framework conditions for financial and labour markets that are relevant to growth and structure. The unique attribute of the new department is the analysis of interdependency between national and supranational regulation within the field of financial and labour markets on the one hand, and real sector development on the other.

Your contact

Professor Reint E. Gropp, PhD
Professor Reint E. Gropp, PhD
Mitglied - Department Präsidialbereich
Send Message +49 345 7753-700 Personal page

Working Papers


Banking Deregulation and Household Consumption of Durables

H. Evren Damar Ian Lange Caitlin McKennie Mirko Moro

in: IWH Discussion Papers, No. 18, 2020


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.

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