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

Norwich Business School

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

28 Citations (Scopus)

17 Downloads (Pure)

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 dependence in the data that arises due to unobserved common factors. On average, financial development 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
Number of pages	6
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

Keywords

Financial development
Heterogeneous panel cointegration
Income inequality

UN SDGs

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

Access to Document

10.1016/j.frl.2019.04.036

Accepted_ManuscriptAccepted author manuscript, 921 KBLicence: CC BY-NC-ND

Cite this

@article{282ba2acda04423793c402777f9dbf21,

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 dependence in the data that arises due to unobserved common factors. On average, financial development reduces income inequality in the long-run, with the result robust to different measures of finance and across country income groups.",

keywords = "Financial development, Heterogeneous panel cointegration, Income inequality",

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",

}

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 dependence in the data that arises due to unobserved common factors. On average, financial development 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 dependence in the data that arises due to unobserved common factors. On average, financial development reduces income inequality in the long-run, with the result robust to different measures of finance and across country income groups.

KW - Financial development

KW - Heterogeneous panel cointegration

KW - Income inequality

UR - http://www.scopus.com/inward/record.url?scp=85065445316&partnerID=8YFLogxK

U2 - 10.1016/j.frl.2019.04.036

DO - 10.1016/j.frl.2019.04.036

M3 - Article

VL - 32

JO - Finance Research Letters

JF - Finance Research Letters

SN - 1544-6123

M1 - 101180

ER -

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

Abstract

Keywords

UN SDGs

Access to Document

Other files and links

Cite this