IDEAS home Printed from https://ideas.repec.org/a/fau/fauart/v58y2008i11-12p554-575.html
   My bibliography  Save this article

Financial Market Access and Capital Income Inequality

Author

Abstract

This paper explores the effect of broadening financial market access on inequality. I characterize in a parsimonious model of endogenous market participation how capital income inequality depends on financial market costs. A Kuznets curve type of relationship is uncovered under DARA utility. Data on the contribution of capital income to inequality (CKI) in eleven countries is presented against a measure of equity trading costs. Consistently with the model, during the last few decades of improving market access, the CKI has tended to increase where trading costs have been high, and to decrease where these costs have been low enough. The results imply that financial liberalization may have differential effects for inequality in advanced and in emerging economies.

Suggested Citation

  • pellicer.miquel@gmail.com, 2008. "Financial Market Access and Capital Income Inequality," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 58(11-12), pages 554-575, December.
    • Handle: RePEc:fau:fauart:v:58:y:2008:i:11-12:p:554-575
    as

    Download full text from publisher

    File URL: http://journal.fsv.cuni.cz/storage/1148_str_554_575_-_pellicer.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    income inequality; household portfolio; financial liberalization;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:fauart:v:58:y:2008:i:11-12:p:554-575. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.