IDEAS home Printed from https://ideas.repec.org/a/dah/aeqaeq/v66_y2020_i3_q3_p179-207.html
   My bibliography  Save this article

Financial Development and Its Effect on Inequality: A Case of Fair Profit Maximization, Favoritism, or Discrimination?

Author

Listed:
  • Yaron Zelekha
  • Michal Weber

Abstract

Financial development negatively affects inequality and poverty in many countries. This research uniquely examines whether the negative effect of financial development on inequality in Israel is also significantly dependent on the gender, ethnic, and religious characteristics of the population. The results suggest that a part of the role that underdeveloped financial systems play in inequality may be due to favoritism toward advantaged majority groups regarding allocation of small business credit. The research has important policy implications regarding the role of financial system regulation and the effect of favoritism in determining inequality and poverty patterns.

Suggested Citation

  • Yaron Zelekha & Michal Weber, 2020. "Financial Development and Its Effect on Inequality: A Case of Fair Profit Maximization, Favoritism, or Discrimination?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot GmbH, Berlin, vol. 66(3), pages 179-207.
    • Handle: RePEc:dah:aeqaeq:v66_y2020_i3_q3_p179-207
    DOI: 10.3790/aeq.66.3.179
    as

    Download full text from publisher

    File URL: https://doi.org/10.3790/aeq.66.3.179
    Download Restriction: Access to full text is restricted to subscribers (2008 onwards); Pay-per-view access from https://elibrary.duncker-humblot.com/journals/aeq (2008 onwards) and http://www.genios.de (2008 onwards)
    File URL: https://libkey.io/10.3790/aeq.66.3.179?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Financial development; Income inequality; Small businesses; Credit; Discrimination; Gender;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dah:aeqaeq:v66_y2020_i3_q3_p179-207. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: E-Publishing-Team (email available below). General contact details of provider: https://www.duncker-humblot.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.