Finance and Wealth Inequality
| Author(s): | prof. Roman Horváth Ph.D., Iftekhar Hasan Mgr. Jan Mareš, Ph.D., Iftekhar Hasan |
|---|---|
| Type: | IES Working Papers |
| Year: | 2018 |
| Number: | 35 |
| ISSN / ISBN: | |
| Published in: | IES Working Papers 35/2018 |
| Publishing place: | Prague |
| Keywords: | Wealth inequality, finance, Bayesian model averaging |
| JEL codes: | D31, E21 |
| Suggested Citation: | Hasan, I., Horvath, R. and Mares, J. (2018): "Finance and Wealth Inequality". IES Working Papers 35/2018, IES FSV, Charles University. |
| Abstract: | Using a global sample, this paper investigates the determinants of wealth inequality capturing various economic, financial, political, institutional, and geographical indicators. Using instrumental variable Bayesian model averaging, it reveals that only a handful of indicators robustly matter and finance plays a key role. It reports that while financial depth increases wealth inequality, efficiency and access to finance reduce inequality. In addition, redistribution and education are associated with lower inequality whereas wars and openness to international trade contribute to greater wealth inequality. |
| Downloadable: |
wp_2018_35_mares |
