TY - JOUR

T1 - The impact of finance on income inequality: A threshold analysis

AU - Thornton, John

AU - Vasilakis, Chrysovalantis

N1 - Economics and Business Letters is an open-access quarterly peer-reviewed international journal (2012-). Published by the Universidad de Oviedo, Spain

PY - 2024/5/22

Y1 - 2024/5/22

N2 - We identify the optimal level of financial development for income inequality in a panel of countries employing a non-linear panel Generalized Method of Moments (GMM) approach. The impact of financial development is statistically significant above and below the optimal level, but its impact on income inequality is not asymmetric, with the costs of financial ‘under-development’ being greater than those for ‘over-development’.

AB - We identify the optimal level of financial development for income inequality in a panel of countries employing a non-linear panel Generalized Method of Moments (GMM) approach. The impact of financial development is statistically significant above and below the optimal level, but its impact on income inequality is not asymmetric, with the costs of financial ‘under-development’ being greater than those for ‘over-development’.

U2 - 10.17811/ebl.13.2.2024.104-111

DO - 10.17811/ebl.13.2.2024.104-111

M3 - Article

VL - 13

JO - Economics and Business Letters

JF - Economics and Business Letters

IS - 2

ER -