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Financial Vulnerability And Income Inequality: New Evidence From Oecd Countries

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  • Nicholas Apergis

    (University of Piraeus)

Abstract

This study explores, for the first time, how financial vulnerability affects income inequality across OECD countries, from 1990 to 2015. The empirics use a new financial vulnerability index constructed by Adrian and Duarte (2016). Through the methodology of their modeling approach, panel GARCH and GMM methods, the findings indicate that financial vulnerability exerts a negative impact on income equality conditions. The results survive certain definitions of income inequality and corruption, while they highlight the importance of financial stability conditions, with potential further repercussions to the real economy.

Suggested Citation

  • Nicholas Apergis, 2019. "Financial Vulnerability And Income Inequality: New Evidence From Oecd Countries," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 21(3), pages 1-14, January.
    • Handle: RePEc:idn:journl:v:21:y:2019:i:3f:p:1-14
    DOI: https://doi.org/10.21098/bemp.v21i3.945
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    References listed on IDEAS

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    Cited by:

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    2. Ángela María Ortega-Galán & Rocío Ortiz-Amo & Elena Andina-Díaz & María Dolores Ruiz-Fernández, 2020. "The Sustainability of Public Social Services: A Qualitative Study," Sustainability, MDPI, vol. 12(9), pages 1-11, May.
    3. Sheng, Yan & Huang, Zhixiong & Liu, Chen & Yang, Zhiqing, 2019. "How does business strategy affect wage premium? Evidence from China," Economic Modelling, Elsevier, vol. 83(C), pages 31-41.
    4. Tai-Hock Kuek & Chin-Hong Puah & M. Affendy Arip, 2020. "Financial Vulnerability and Economic Dynamics in Malaysia," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 9(special i), pages 55-73.
    5. Bayront Yudit Rumondor & Pakasa Bary, 2020. "Capital Flows and Bank Risk-Taking Behavior: Evidence From Indonesia," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 9(special i), pages 33-53.
    6. Robertas Vaitkus & Asta Vasiliauskaitė, 2022. "An Assessment of the Impact of Legal Regulation on Financial Security in OECD Countries," JRFM, MDPI, vol. 15(2), pages 1-19, February.

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    More about this item

    Keywords

    Financial Vulnerability; Income Inequality; Panel Country Data;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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