The long-run relationship between finance and income inequality: Evidence from panel data

Thornton, John and di Tommaso, Caterina (2020) The long-run relationship between finance and income inequality: Evidence from panel data. Finance Research Letters, 32. ISSN 1544-6123

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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.

Item Type:	Article
Uncontrolled Keywords:	financial development,heterogeneous panel cointegration,income inequality,finance,sdg 10 - reduced inequalities ,/dk/atira/pure/subjectarea/asjc/2000/2003
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
Related URLs:	http://www.scopus.com/inward/record.url?...
Depositing User:	LivePure Connector
Date Deposited:	09 Sep 2019 09:30
Last Modified:	30 Jan 2024 02:37
URI:	https://ueaeprints.uea.ac.uk/id/eprint/72115
DOI:	10.1016/j.frl.2019.04.036

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