How do banking crises impact on income inequality?
- Authors: Agnello, L; Sousa, R
- Publication year: 2012
- Type: Articolo in rivista (Articolo in rivista)
- Key words: inequality, banking crisis, financial depth, government size
- OA Link: http://hdl.handle.net/10447/66148
Abstract
We show that banking crises have an important effect on income distribution: inequality increases before banking crisis episodes and sharply declines afterwards. We also find that, while a large government size does not per se seem to reduce inequality, a rise in financial depth (i.e. better access to credit provided by the banking sector) contributes to a more equal distribution of income.