Arbeitspapier

Income inequality and private bank credit in developed economies

The influence of financial deepening on income inequality in developed economies is studied with particular interest in the European Union member states that have large penetration of bank credit. Building on the model of financially open economies (Kunieda et al, 2014) and extending its implications for the top-income shares, it is shown that a simultaneous increase in private bank credit relative to the gross domestic product (GDP) and the gap between real interest rate and GDP growth rate increases inequality, as measured by both the Gini index and the top-income shares. To establish the effect on the top-income shares, a simultaneous estimation procedure is proposed that exploits the implications of the fact that a higher income range is well-characterized by the Pareto distribution.

ISBN
978-92-79-67443-3
Sprache
Englisch

Erschienen in
Series: JRC Working Papers in Economics and Finance ; No. 2017/6

Klassifikation
Wirtschaft
Personal Income, Wealth, and Their Distributions
Money Supply; Credit; Money Multipliers
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
One, Two, and Multisector Growth Models
Thema
credit
financial deepening
European Union
income inequality

Ereignis
Geistige Schöpfung
(wer)
Kvedaras, Virmantas
Ereignis
Veröffentlichung
(wer)
Publications Office of the European Union
(wo)
Luxembourg
(wann)
2017

DOI
doi:10.2760/127321
Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Kvedaras, Virmantas
  • Publications Office of the European Union

Entstanden

  • 2017

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