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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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:28:y:2021:i:15:p:1283-1287
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DOI: 10.1080/13504851.2020.1808570
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