Do financial reforms help stabilize inequality?

Dimitris Christopoulos and Peter McAdam ()

Journal of International Money and Finance, 2017, vol. 70, issue C, 45-61

Abstract: We explore the relationship between financial reforms and income inequality using a panel of 29 countries in 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, while 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.

Keywords: Inequality; Gini coefficient; Financial reform; Unit root; Panel; Fractional integration (search for similar items in EconPapers)
JEL-codes: C01 C12 D63 G15 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261560616300390
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Do financial reforms help stabilize inequality? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:70:y:2017:i:c:p:45-61

DOI: 10.1016/j.jimonfin.2016.05.003

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().