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Macroprudential policies and income inequality in former transition economies

Author

Listed:
  • Panagiotis Konstantinou

    (Athens University of Economics and Business)

  • Anastasios Rizos

    (Alpha Bank, Greece and Athens University of Economics and Business)

  • Artemis Stratopoulou

    (Athens University of Economics and Business)

Abstract

We study the effects of the adoption of macroprudential policies on income inequality in former transition economies over the period 2002–2014. In general, this adoption leads to rising income inequality; however, the effect depends on the degree of domestic financial development and globalization: for low levels of openness and financial development, they increase inequality. Instead, some macroprudential measures may result in lower income inequality, provided the adopting economy is sufficiently open and has a developed/unrestricted financial system. Our results suggest that reduction in income inequality can be promoted together with financial stabilization and the avoidance of systemic risks.

Suggested Citation

  • Panagiotis Konstantinou & Anastasios Rizos & Artemis Stratopoulou, 2022. "Macroprudential policies and income inequality in former transition economies," Economic Change and Restructuring, Springer, vol. 55(2), pages 1005-1062, May.
    • Handle: RePEc:kap:ecopln:v:55:y:2022:i:2:d:10.1007_s10644-021-09333-9
    DOI: 10.1007/s10644-021-09333-9
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    More about this item

    Keywords

    Former transition economies; Macroprudential policies; Income inequality; Financial development; Globalization;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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