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The impact of finance on income inequality: a threshold analysis

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  • John Thornton; Chrysoivalantis Vasilakis

Abstract

We identify the optimal level of financial development for income inequality in a panel of countries employing a non-linear panel Generalized Method of Moments approach. The impact of financial development is statistically significant above and below the optimal level, but its impact on income inequality is not asymmetric, with the costs of financial ‘under-development’ being greater than those for ‘over-development’.

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  • John Thornton; Chrysoivalantis Vasilakis, 2024. "The impact of finance on income inequality: a threshold analysis," Economics and Business Letters, Oviedo University Press, vol. 13(2), pages 104-111.
    • Handle: RePEc:ove:journl:aid:19890
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/19890
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