BANK COMPETITION, FINANCIAL DEVELOPMENT, AND INCOME INEQUALITY.
Income inequality rises with financial development initially and then drops. We reach this conclusion by numerically solving a heterogeneous agent model parameterized to the Chinese economy. The model features a banking sector with Cournot competition, and the process of financial development in the...
| Publicado en: | Contemporary Economic Policy Vol. 39; no. 1; pp. 42 - 59 |
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| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Jan2021
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Income inequality rises with financial development initially and then drops. We reach this conclusion by numerically solving a heterogeneous agent model parameterized to the Chinese economy. The model features a banking sector with Cournot competition, and the process of financial development in the model economy begins with the deregulation of the banking sector. Based on regressions with the fixed effects and the system generalized method of moments, the empirical analysis also suggests an inverted‐U relationship between income inequality and financial development using provincial data from China. |
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