We show that banking crises have an important effect on income distribution: inequality increases before banking crisis episodes and sharply declines afterwards. We also find that, while a large government size does not per se seem to reduce inequality, a rise in financial depth (i.e. better access to credit provided by the banking sector) contributes to a more equal distribution of income.
|Numero di pagine||5|
|Rivista||Applied Economics Letters|
|Stato di pubblicazione||Published - 2012|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics