Publication detail

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
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


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