How do banking crises impact on income inequality?

Luca Agnello () and Ricardo Sousa

Applied Economics Letters, 2012, vol. 19, issue 15, 1425-1429

Abstract: We show that banking crises have an important effect on income distribution: inequality increases before banking crisis episodes and sharply declines afterwards. We also find that, while a large government size does not per se seem to reduce inequality, a rise in financial depth (i.e. better access to credit provided by the banking sector) contributes to a more equal distribution of income.

Date: 2012
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Working Paper: How do Banking Crises Impact on Income Inequality? (2011)
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DOI: 10.1080/13504851.2011.631885

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