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Financial technology, wealth threshold, and wealth inequality in China

Author

Listed:
  • Luo, Juan
  • Lin, Shaomin
  • Zhang, Jie

Abstract

This study developed a theoretical model to examine the impact of financial technology (fintech) on wealth inequality from a wealth threshold perspective. The model's numerical simulation results suggest that fintech exerted an inverted U-shaped impact on wealth inequality. Empirical test results based on China Household Finance Survey panel data and fintech index data confirmed this finding. The impact varied across regions and among groups with differing education levels and financial literacy.

Suggested Citation

  • Luo, Juan & Lin, Shaomin & Zhang, Jie, 2024. "Financial technology, wealth threshold, and wealth inequality in China," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012121
    DOI: 10.1016/j.frl.2024.106183
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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