Inequality and Private Credit
This article examines whether the direction of the effect of inequality on private credit depends on the capital constraints of individual countries, as predicted by Balmaceda and Fischer (2010). Consistent with the model's predictions, we find that greater income inequality leads to a higher ratio of private credit to GDP in economies with low incomes and weak legal rights, whereas the reverse is true in economies with high incomes and strong legal rights.
|Date of creation:||Aug 2015|
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Web page: http://finance.wharton.upenn.edu/weiss/papers.html
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- Sofia Bauducco & Alexandre Janiak, 2012. "Minimum wages strike back: the effects on capital and labor demands in a large-firm framework," Documentos de Trabajo 287, Centro de Economía Aplicada, Universidad de Chile.
- Felipe Balmaceda & Ronald Fischer, 2010.
"Economic performance, creditor protection, and labour inflexibility,"
Oxford Economic Papers,
Oxford University Press, vol. 62(3), pages 553-577, July.
- Ronald Fischer, 2008. "Economic performance, creditor protection and labor inflexibility," Documentos de Trabajo 250, Centro de Economía Aplicada, Universidad de Chile.
- Felipe Balmaceda & Ronald Fischer, 2009. "Economic Performance, creditor protection and labor inflexibility," Documentos de Trabajo 259, Centro de Economía Aplicada, Universidad de Chile.
- Andreasen, Eugenia & Schindler, Martin & Valenzuela, Patricio, 2015. "Capital Controls and the Cost of Debt," Working Papers 15-02, University of Pennsylvania, Wharton School, Weiss Center.
- Eugenia Andreasen & Martin Schindler & Patricio A Valenzuela, 2017. "Capital Controls and the Cost of Debt," IMF Working Papers 17/135, International Monetary Fund.
- Eugenia Andreasen & Martin Schindler & Patricio Valenzuela, 2015. "Capital Controls and the Cost of Debt," Documentos de Trabajo 307, Centro de Economía Aplicada, Universidad de Chile.
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