Artículo de revista
DOES FINANCE ALTER THE RELATION BETWEEN INEQUALITY AND GROWTH?
Fecha
2019Registro en:
Economic Inquiry, Volumen 57, Issue 1, 2019, Pages 410-428
14657295
00952583
10.1111/ecin.12581
Autor
Braun, Matías
Parro, Francisco
Valenzuela, Patricio
Institución
Resumen
© 2018 Western Economic Association International This paper introduces a model in which greater inequality reduces growth in economies with low levels of financial development but that this effect is attenuated in economies with more developed systems. The model also predicts that individuals in economies with developed financial markets have a higher tolerance to inequality. Using a panel dataset that covers a large number of countries, this paper shows empirical evidence that is consistent with the main predictions of the model. Overall, this paper's major findings highlight that some of the pernicious effects of inequality can be attenuated by improving access to credit. (JEL D3, E6, P1, O4, I2).