We use heterogeneous panel cointegration techniques to examine the long-run effect of financial development on income inequality in a panel of 119 countries from 1980 to 2015. We include real GDP per capita in the cointegration relation and explicitly deal with cross-sectional dependence in the data that arises due to unobserved common factors. On average, financial development reduces income inequality in the long-run, with the result robust to different measures of finance and across country income groups.
The long-run relationship between finance and income inequality: Evidence from panel data
Di Tommaso C.
2020-01-01
Abstract
We use heterogeneous panel cointegration techniques to examine the long-run effect of financial development on income inequality in a panel of 119 countries from 1980 to 2015. We include real GDP per capita in the cointegration relation and explicitly deal with cross-sectional dependence in the data that arises due to unobserved common factors. On average, financial development reduces income inequality in the long-run, with the result robust to different measures of finance and across country income groups.File in questo prodotto:
| File | Dimensione | Formato | |
|---|---|---|---|
|
1-s2.0-S1544612319301576-main.pdf
non disponibili
Tipologia:
Documento in Versione Editoriale
Licenza:
Copyright dell'editore
Dimensione
539.5 kB
Formato
Adobe PDF
|
539.5 kB | Adobe PDF | Visualizza/Apri Richiedi una copia |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
