The long-run relationship between finance and income inequality: Evidence from panel data

John Thornton; Caterina Di Tommaso

doi:10.1016/j.frl.2019.04.036

The long-run relationship between finance and income inequality: Evidence from panel data

John Thornton
, Caterina Di Tommaso

The Albert Gubay Business School

Research output: Contribution to journal › Article › peer-review

Abstract

We use heterogeneous panel cointegration techniques to examine the long-run effect of financial development on income inequality in a panel of 119 countries from 1980 to 2015. We include real GDP per capita in the cointegration relation and explicitly deal with cross-sectional de- pendence in the data that arises due to unobserved common factors. On average, financial de- velopment reduces income inequality in the long-run, with the result robust to different measures of finance and across country income groups.

Original language	English
Article number	101180
Journal	Finance Research Letters
Volume	32
Early online date	30 Apr 2019
DOIs	https://doi.org/10.1016/j.frl.2019.04.036
Publication status	Published - Jan 2020

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.frl.2019.04.036

Cite this

@article{6189bc42008f4ec4b19d3081eba43d94,

title = "The long-run relationship between finance and income inequality: Evidence from panel data",

abstract = "We use heterogeneous panel cointegration techniques to examine the long-run effect of financial development on income inequality in a panel of 119 countries from 1980 to 2015. We include real GDP per capita in the cointegration relation and explicitly deal with cross-sectional de- pendence in the data that arises due to unobserved common factors. On average, financial de- velopment reduces income inequality in the long-run, with the result robust to different measures of finance and across country income groups.",

author = "John Thornton and \{Di Tommaso\}, Caterina",

year = "2020",

month = jan,

doi = "10.1016/j.frl.2019.04.036",

language = "English",

volume = "32",

journal = "Finance Research Letters",

issn = "1544-6123",

publisher = "Elsevier Limited",

}

TY - JOUR

T1 - The long-run relationship between finance and income inequality: Evidence from panel data

AU - Thornton, John

AU - Di Tommaso, Caterina

PY - 2020/1

Y1 - 2020/1

N2 - We use heterogeneous panel cointegration techniques to examine the long-run effect of financial development on income inequality in a panel of 119 countries from 1980 to 2015. We include real GDP per capita in the cointegration relation and explicitly deal with cross-sectional de- pendence in the data that arises due to unobserved common factors. On average, financial de- velopment reduces income inequality in the long-run, with the result robust to different measures of finance and across country income groups.

AB - We use heterogeneous panel cointegration techniques to examine the long-run effect of financial development on income inequality in a panel of 119 countries from 1980 to 2015. We include real GDP per capita in the cointegration relation and explicitly deal with cross-sectional de- pendence in the data that arises due to unobserved common factors. On average, financial de- velopment reduces income inequality in the long-run, with the result robust to different measures of finance and across country income groups.

U2 - 10.1016/j.frl.2019.04.036

DO - 10.1016/j.frl.2019.04.036

M3 - Article

SN - 1544-6123

VL - 32

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 101180

ER -

The long-run relationship between finance and income inequality: Evidence from panel data

Abstract

UN SDGs

Access to Document

Fingerprint

Cite this