Format du dépôt |
Fichier |
Type de dépôt |
Article dans une revue |
Titre |
en
Structure of income inequality and household leverage : Cross-country causal evidence
|
Résumé |
en
How does income inequality and its structure affect credit? Based on various strands of the literature, we hypothesize that rising income inequality should lead to higher house- hold credit at the aggregate level, and that a substantial part of this effect should be driven by the impoverishment of the middle class relative to top-income households. These intu- itions are empirically confirmed by a study based on a country-level dataset over the pe- riod 1970–2017. To identify exogenous variations in inequality, we develop an instrumental variable approach based on two types of country-level instruments: the total number of ratified ILO conventions and factor endowments. Our results show exogenous variations in inequality have a positive impact on household credit: a one-standard-deviation increase in the Gini index generates a 5- to 8- percentage-point expansion in the ratio of house- hold credit to GDP. In addition, the impact is 1.5–1.8 times stronger when the increase in inequality is driven by the income of top earners relative to the middle class rather than by the increase in top earners’ incomes at the expense of the lowest percentiles of the dis- tribution. Those results are robust to various sets of instruments, databases, controls, and variable definitions. They also consistently disappear in countries where financial markets are insufficiently developed.
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Auteur(s)
|
Rémi Bazillier
1, 2
, Jérôme Héricourt
3, 4
, Samuel Ligonnière
5, 4
1
CES -
Centre d'économie de la Sorbonne
( 15080 )
- Maison des Sciences Économiques - 106-112 Boulevard de l'Hôpital - 75647 Paris Cedex 13
- France
-
Université Paris 1 Panthéon-Sorbonne UMR8174 ( 7550 )
;
-
Centre National de la Recherche Scientifique UMR8174 ( 441569 )
2
UP1 -
Université Paris 1 Panthéon-Sorbonne
( 7550 )
- 12 place du Panthéon, 75231 Paris Cedex 05
- France
3
CEPII -
Centre d'Etudes Prospectives et d'Informations Internationales
( 39083 )
- 9 rue Georges Pitard - 75740 Paris Cedex 15
- France
-
Centre d'analyse stratégique ( 309406 )
4
LEM -
Lille économie management - UMR 9221
( 413157 )
- Université de Lille, Site Cité Scientifique Bâtiment SH2 - 59655 Villeneuve D'Ascq
- France
-
Université d'Artois UMR 9221 ( 56711 )
;
-
Université catholique de Lille ( 300877 )
;
-
Université de Lille UMR 9221 ( 374570 )
;
-
Centre National de la Recherche Scientifique UMR 9221 ( 441569 )
5
BETA -
Bureau d'Économie Théorique et Appliquée
( 1001961 )
- Université de Lorraine, UFR Droit Sciences Economiques et Gestion, 13 place Carnot CO 70026, 54035 Nancy Cedex
Université de Strasbourg, Faculté des Sciences Economiques et de Gestion, 61 avenue de la Forêt Noire 67085 Strasbourg Cedex
- France
-
AgroParisTech ( 148117 )
;
-
Université de Strasbourg ( 199013 )
;
-
Université de Haute-Alsace (UHA) Mulhouse - Colmar ( 237692 )
;
-
Université de Lorraine ( 413289 )
;
-
Centre National de la Recherche Scientifique UMR7522 ( 441569 )
;
-
Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement UMR1443 ( 577435 )
|
Licence |
Paternité - Pas d'utilisation commerciale
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2021-02
|
Date de publication électronique |
2020-12-28
|
Volume |
132
|
Page/Identifiant |
103629
|
Public visé |
Scientifique
|
Numéro d'article |
|
Domaine(s) |
-
Sciences de l'Homme et Société/Economies et finances
|
Mots-clés (JEL) |
-
D - Microeconomics/D.D3 - Distribution/D.D3.D31 - Personal Income, Wealth, and Their Distributions
-
E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E25 - Aggregate Factor Income Distribution
-
E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E44 - Financial Markets and the Macroeconomy
-
G - Financial Economics/G.G0 - General/G.G0.G01 - Financial Crises
|
Mots-clés |
en
Credit, Finance, Income inequality, Inequality structure
|
DOI |
10.1016/j.euroecorev.2020.103629 |
PII |
S0014-2921(20)30259-2 |