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The dynamic effect of macroprudential policies on income inequality: some evidence

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Listed:
  • Panagiotis Konstantinou
  • Anastasios Rizos
  • Artemis Stratopoulou

Abstract

We study the dynamic effects of the adoption of macroprudential policies on income inequality over the period 1990 - 2015. We utilize local projections for horizons up to 5 years, and we document that the implementation of borrower-targeted MAPs increases income inequality since they pose obstacles to the access to credit based on household-specific characteristics; however, some financial institutions-targeted instruments (i.e., capital and reserve requirements) lead to a more equal income distribution.Â

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  • Panagiotis Konstantinou & Anastasios Rizos & Artemis Stratopoulou, 2023. "The dynamic effect of macroprudential policies on income inequality: some evidence," Economics and Business Letters, Oviedo University Press, vol. 12(3), pages 248-265.
    • Handle: RePEc:ove:journl:aid:18959
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