Title :

Structure of Income Inequality and Household Leverage: Theory and Cross-Country Evidence

Author(s) :

Bazillier, Rémi [Auteur]
Université Paris 1 Panthéon-Sorbonne [UP1]
Centre d'économie de la Sorbonne [CES]
Héricourt, Jérôme [Auteur]
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Lille économie management - UMR 9221 [LEM]
Ligonnière, Samuel [Auteur]
Ecole Normale Supérieure Paris-Saclay [ENS Paris Saclay]
Lille économie management - UMR 9221 [LEM]

Publication date :

2019-02

English keyword(s) :

Credit
Finance
Income Inequality
Inequality structure

HAL domain(s) :

Sciences de l'Homme et Société/Economies et finances

English abstract : [en]

How does income inequality and its structure affect credit? We extend the theoretical framework by Kumhof et al. (2015) to distinguish between upper, middle and low-income classes, and show that most of the positive impact ...
Show more >How does income inequality and its structure affect credit? We extend the theoretical framework by Kumhof et al. (2015) to distinguish between upper, middle and low-income classes, and show that most of the positive impact of inequality on credit predicted by Kumhof et al. (2015) should be driven by the share of total output owned by the middle classes. Consistently, this impact should weaken in countries where financial markets are insufficiently developed. These theoretical predictions are empirically confirmed by a study based on a 41-country dataset over the period 1970-2014, where exogenous variations of inequality are identified with a new instrument variable, the total number of ILO conventions signed at the country-level.Show less >

Language :

Anglais

Popular science :

Non

Comment :

URL des Documents de travail : https://centredeconomiesorbonne.univ-paris1.fr/documents-de-travail-du-ces/

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL