Finance, risk, and inequality

Thibault Darcillon

Chapter 2 in Handbook on Risk and Inequality, 2022, pp 17-39 from Edward Elgar Publishing

Abstract: This chapter investigates the different effect of financialization on the allocation of risk and inequality in the advanced capitalist economies by stressing the role of politics. First, we explore the mechanisms underlying how different dimensions of financialization–the growth of the financial sector, a change in corporate governance rules and practices in nonfinancial companies and a diffusion of new financial values for households–should affect the allocation of risk and inequality. Additionally, financialization has also affected labor market institutions and tax systems which traditionally have a reducing-effect on inequality and risk. Second, politics plays a central role in shaping the relationship between finance, risk and income. From this point of view, financial deregulation reforms can be seen as political choices as a response to particular sociopolitical expectations. Furthermore, the rise of income inequality and income risk has then affected social demands for redistribution.

Keywords: Economics and Finance; Politics and Public Policy Sociology and Social Policy (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781788972260/9781788972260.00010.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
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:elg:eechap:18499_2

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().