The Impact of Financial Deregulation in Greece on Consumption Patterns

The objective of this paper is to examine the impact of financial deregulation in Greece on the fraction of expenses on durables that can be financed through the financial sector. A theoretical asset-pricing model, in which expenses on non-durables and expenses on durables were explicitly introduced in the utility function, was employed. Through the methodology of GMM it was shown that the deregulation has significantly increased the percentage of financing expenses on durables through credit.