The financial Kuznets curve: Evidence for the euro area

Donatella Baiardi and Claudio Morana

Journal of Empirical Finance, 2016, vol. 39, issue PB, 265-269

Abstract: The paper introduces a new specification of the Kuznets curve, where turning point per capita income is conditioned on the level of financial development. We then provide new evidence on income inequality dynamics for the euro area (EA) countries since the mid-1980s. We find evidence in favor of an EA-wide financial Kuznets curve, also resilient to the recent financial and economic crises. From a policy perspective, our findings highlight the importance of financial development in fostering not only economic growth, but also a more even distribution of income.

Keywords: Euro area; Financial development; Financial stability; Income distribution inequality; Kuznets curve; Real convergence; Subprime mortgage and sovereign debt crisis. (search for similar items in EconPapers)
JEL-codes: G20 G28 O11 O15 O16 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:39:y:2016:i:pb:p:265-269

DOI: 10.1016/j.jempfin.2016.08.003

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