 Wealth distribution and probability of bank failure across countriesArie Jacobi and Joseph Tzur Journal of International Financial Markets, Institutions and Money, 2021, vol. 71, issue C Abstract: An L-Shape distribution of wealth may be viewed as undesirable since a small percentage of the population holds most of the wealth. In this study, we estimated the Burr-XII wealth distribution parameters for 175 countries over the years 2013–2018. We conducted a simulation that shows that L-shape wealth distribution is associated with a lower probability of bank failure than that of a unimodal-shape distribution in different countries. Our study implies that an L-shape of wealth distribution is related to the stability of banks. Therefore, in future empirical studies, it is essential to include the shape of wealth distribution, amongst other factors, in explaining the different bank failure rates across countries. Keywords: Wealth per adult; Burr distribution XII; Bank failure; L-shape distribution; Unimodal-shape distribution; Loan-to-value ratio (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:71:y:2021:i:c:s104244312100010x DOI: 10.1016/j.intfin.2021.101291 Access Statistics for this article Journal of International Financial Markets, Institutions and Money is currently edited by I. Mathur and C. J. Neely More articles in Journal of International Financial Markets, Institutions and Money from Elsevier |
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