Do financial reforms help stabilize inequality?

Arbeitspapier

We explore the relationship between financial reforms and income inequality using a panel of 29 countries over 1975-2005. We extend panel unit root tests to allow for the presence of some financial-reform covariates and further suggest an associated but novel, semi-parametric approach. Results demonstrate that although both gross and net Gini indices follow a unit root process, this picture can change when financial reform indices are accounted for. In particular, whilst gross Gini coefficients are generally not stabilized by financial reforms, net measures are (more likely to be). Thus financial reforms enacted in the presence of a strong safety net would seem preferable.

Object Details

• ISBN: 978-92-899-1593-9
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 1780

Classification and Topics

• Classification: Wirtschaft ; Econometrics ; Hypothesis Testing: General ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; International Financial Markets
• Subject: financial reform ; fractional integration ; Gini coefficient ; Inequality ; panel ; unit root

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Christopoulos, Dimitris ; McAdam, Peter
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/154213
• Last update: 10.03.2025, 11:43 AM CET