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The role of fiscal policy in the link between income inequality and banking crises

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  • Nicholas Apergis

Abstract

This paper explores the link between income inequality and banking crises, when inequality is affected by fiscal policy. Using a two-stage probit least squares method and a panel of 21 countries, spanning the period 1971–2017, the findings indicate that inequality impacts the probability of banking crises through budget deficits, followed by government expenses.

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  • Nicholas Apergis, 2021. "The role of fiscal policy in the link between income inequality and banking crises," Applied Economics Letters, Taylor & Francis Journals, vol. 28(15), pages 1283-1287, September.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:15:p:1283-1287
    DOI: 10.1080/13504851.2020.1808570
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    Cited by:

    1. Nguyen Van Bon, 2022. "Does Digitalization Widen Income Inequality? A Comparative Assessment for Advanced and Developing Economies," South East European Journal of Economics and Business, Sciendo, vol. 17(2), pages 154-171, December.

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