The role of fiscal policy in the link between income inequality and banking crises

Nicholas Apergis

Applied Economics Letters, 2021, vol. 28, issue 15, 1283-1287

Abstract: This paper explores the link between income inequality and banking crises, when inequality is affected by fiscal policy. Using a two-stage probit least squares method and a panel of 21 countries, spanning the period 1971–2017, the findings indicate that inequality impacts the probability of banking crises through budget deficits, followed by government expenses.

Date: 2021
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DOI: 10.1080/13504851.2020.1808570

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