The impact of finance on income inequality: a threshold analysis

Authors

  • John Thornton University of East Anglia
  • Chrysoivalantis Vasilakis The Business School, Bangor University, Bangor , UK

DOI:

https://doi.org/10.17811/ebl.13.2.2024.104-111

Keywords:

Income inequality, Financial development, Threshold estimation

Abstract

We identify the optimal level of financial development for income inequality in a panel of countries employing a non-linear panel Generalized Method of Moments approach. The impact of financial development is statistically significant above and below the optimal level, but its impact on income inequality is not asymmetric, with the costs of financial ‘under-development’ being greater than those for ‘over-development’.

Author Biographies

John Thornton, University of East Anglia

Visiting Professor of Finance, Norwich Business School

Chrysoivalantis Vasilakis, The Business School, Bangor University, Bangor , UK

Associate Professor, Economics

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Published

22-05-2024

How to Cite

Thornton, J., & Vasilakis, C. (2024). The impact of finance on income inequality: a threshold analysis. Economics and Business Letters, 13(2), 104–111. https://doi.org/10.17811/ebl.13.2.2024.104-111

Issue

Vol. 13 No. 2 (2024): June

Section

Articles

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