Abstract
This paper introduces a model in which greater inequality reduces growth in economies with low levels of financial development but that this effect is attenuated in economies with more developed systems. The model also predicts that individuals in economies with developed financial markets have a higher tolerance to inequality. Using a panel dataset that covers a large number of countries, this paper shows empirical evidence that is consistent with the main predictions of the model. Overall, this paper's major findings highlight that some of the pernicious effects of inequality can be attenuated by improving access to credit. (JEL D3, E6, P1, O4, I2).
| Original language | English (US) |
|---|---|
| Pages (from-to) | 410-428 |
| Number of pages | 19 |
| Journal | Economic Inquiry |
| Volume | 57 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jan 2019 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities
All Science Journal Classification (ASJC) codes
- General Business, Management and Accounting
- Economics and Econometrics
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