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Wealth Inequality Determinants in the EU Members from the CEE Region, 1995-2021

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  • Petar Peshev
  • Kristina Stefanova
  • Ivanina Mancheva

Abstract

This paper models wealth concentration in 11 EU members from the CEE region using official data for the period between 1995 and 2021 and applies panel econometric methods. The analysis uses the world inequality database (WID.world) for deriving wealth distribution and inequality measures. Our results suggest that inequality and wealth concentration grow at the expense of the middle class and the poorer half of the population. Regression results suggest that the main contributors to wealth inequality are the Great Recession of 2008–2009, inflation, house prices, and bond prices, while GDP per capita, equity prices and various interest rates restore a more equal net wealth distribution. Other variables are also found to have direct or indirect (instrumental variables) associations with the wealth concentration (the dependent variables).

Suggested Citation

  • Petar Peshev & Kristina Stefanova & Ivanina Mancheva, 2023. "Wealth Inequality Determinants in the EU Members from the CEE Region, 1995-2021," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 19-40.
    • Handle: RePEc:bas:econst:y:2023:i:6:p:19-40
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    File URL: https://www.iki.bas.bg/Journals/EconomicStudies/2023/2023-6/02_Peshev.pdf
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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