RT info:eu-repo/semantics/article
T1 Rethinking the income inequality and financial development nexus. A study of nine OECD countries
A1 de la Cuesta González, Marta
A1 Ruza, Cristina
A1 Rodríguez Fernández, José Miguel
K1 Ingeniería eléctrica
K1 Sustainable finance
K1 Income inequality
K1 Composite indicator
K1 Financial crisis
K1 Financiación sostenible
K1 Desigualdad de ingresos
K1 Indicador compuesto
K1 Crisis financiera
K1 53 Ciencias Económicas
AB Sustainable finance seeks to increase the contribution of finance to sustainable and inclusive growth. The global financial crisis of 2008 provoked the return of inequality in advanced countries to levels typical of a century ago. The aim of this paper is to empirically analyze the relationship between finance and income inequality for a group of nine OECD countries over the pre-crisis and post-crisis periods (2000–2015). The model proposed in this study simultaneously considers two explanatory variables for measuring financial depth (credit provision and capital markets) and a new multidimensional variable to measure the financial system’s resilience (a composite indicator), and conducts panel data analysis. The empirical results confirm that in terms of financial depth, the "too much finance hypothesis" holds. We also find that financial system’s resilience helps alleviate existing income inequality and that income inequality appears higher in liberal market economies than in coordinated economies. These results encourage policymakers to look beyond traditional public redistribution interventions and to pay attention to other financial variables related to the financialization process, the behavior of financial intermediaries, and the specific environment in which they operate.
PB MDPI
YR 2020
FD 2020
LK https://uvadoc.uva.es/handle/10324/59049
UL https://uvadoc.uva.es/handle/10324/59049
LA eng
NO Sustainability 2020, vol. 12, n. 13, 5449
NO Producción Científica
DS UVaDOC
RD 21-may-2024