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Effects of Capital Flow Management Measures on Wealth Inequality: New Evidence from Counterfactual Estimators

Author

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  • Yang Zhou

    (Institute of Developing Economies, Japan External Trade Organization and Research Institute for Economics & Business Administration (RIEB), Kobe University, JAPAN)

  • Shigeto Kitano

    (Research Institute for Economics and Business Administration (RIEB), Kobe University, JAPAN)

Abstract

We provide cross-country evidence that variations in capital flow management measures (CFMs) result in differences in wealth inequality and distribution by using counterfactual estimators for causal inference. Diverging from previous studies, we analyze the effects of ten distinct asset-specific CFMs on wealth inequality and distribution. While we obtain consistent results of aggregate CFMs with previous studies, our results of asset-specific CFMs are quite heterogeneous. Our result implies that the effects of CFMs on wealth inequality and distribution significantly depend on asset categories as well as income levels and capital flow directions.

Suggested Citation

  • Yang Zhou & Shigeto Kitano, 2024. "Effects of Capital Flow Management Measures on Wealth Inequality: New Evidence from Counterfactual Estimators," Discussion Paper Series DP2024-30, Research Institute for Economics & Business Administration, Kobe University, revised Dec 2024.
    • Handle: RePEc:kob:dpaper:dp2024-30
    as

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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2024-30.pdf
    File Function: Revised version, 2024
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    More about this item

    Keywords

    Capital flow management measures (CFMs); Wealth inequality; Gini coefficient; Wealth distribution; Counterfactual estimator;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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