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

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

[img]
Preview
PDF (Accepted_Manuscript) - Submitted Version
Download (942kB) | Preview

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 ,/dk/atira/pure/subjectarea/asjc/2000/2003
Faculty \ School: Faculty of Social Sciences > Norwich Business School
Related URLs:
Depositing User: LivePure Connector
Date Deposited: 09 Sep 2019 09:30
Last Modified: 11 Jul 2020 23:52
URI: https://ueaeprints.uea.ac.uk/id/eprint/72115
DOI: 10.1016/j.frl.2019.04.036

Actions (login required)

View Item View Item