Does income inequality contribute to credit cycles?

Tuomas Malinen

MPRA Paper from University Library of Munich, Germany

Abstract: Recent literature has presented arguments linking income inequality on the financial crash of 2007 - 2009. One proposed channel is expected to work through bank credit. We analyze the relationship between income inequality and bank credit in panel cointegration framework, and find that they have a long-run dependency relationship. Results show that income inequality has contributed to the increase of bank credit in developed economies after the Second World War.

Keywords: top 1% income share; bank loans; cointegration (search for similar items in EconPapers)
JEL-codes: C23 D31 G21 (search for similar items in EconPapers)
Date: 2014-04
New Economics Papers: this item is included in nep-ban and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Does income inequality contribute to credit cycles? (2016)
Journal Article: Does income inequality contribute to credit cycles? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:52831

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