Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Equities and Inequality
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
2005 (English)Report (Other academic)
Abstract [en]

This paper studies the relationship between investor protection, the development of financial markets and income inequality. In the presence of market frictions, investor protection promotes financial development by raising confidence and reducing the costs of external financing. Developed financial systems spread risks among financiers and firms, allocating them to the agents bearing them the best. Therefore, financial development plays the twofold role of encouraging agents to undertake risky enterprises and providing them with insurance. By increasing the number of risky projects, it raises income inequality. By extending insurance to more agents, it reduces it. As a result, the relationship between financial development and income inequality is hump-shaped. Empirical evidence from a cross-section of sixty-nine countries, as well as a panel of fifty-two countries over the period 1976-2000, supports the predictions of the model.

Place, publisher, year, edition, pages
Stockholm: IIES , 2005. , p. 49
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University. (Online), ISSN 1653-610X ; 737
Keywords [en]
income inequality, financial development, capital market frictions, investor protection, instrumental variables, dynamic panel data
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-42216OAI: oai:DiVA.org:su-42216DiVA, id: diva2:344408
Available from: 2010-08-19 Created: 2010-08-19 Last updated: 2010-08-19Bibliographically approved

Open Access in DiVA

fulltext(521 kB)443 downloads
File information
File name FULLTEXT01.pdfFile size 521 kBChecksum SHA-512
c8c2f247f7ebc34c6a6696c15dd0071dddb4adf075106c18019c323d854a695066a09533ac769aa093d72d76d593dfef88d9a75f581272b8d348cda3c97adf18
Type fulltextMimetype application/pdf

By organisation
Institute for International Economic Studies
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 445 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 373 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf