Detailed Information

Cited 0 time in webofscience Cited 0 time in scopus
Metadata Downloads

Does income inequality lead to banking crises in developing countries? Empirical evidence from cross-country panel data

Authors
Rhee, Dong-EunKim, Hyoungjong
Issue Date
6월-2018
Publisher
ELSEVIER
Keywords
Income inequality; Banking crisis; Household debt
Citation
ECONOMIC SYSTEMS, v.42, no.2, pp.206 - 218
Indexed
SSCI
SCOPUS
Journal Title
ECONOMIC SYSTEMS
Volume
42
Number
2
Start Page
206
End Page
218
URI
https://scholar.korea.ac.kr/handle/2021.sw.korea/75430
DOI
10.1016/j.ecosys.2017.08.007
ISSN
0939-3625
Abstract
This study empirically examines whether increasing income inequality results in banking crises using panel data for 68 countries covering the years 1973 to 2010. The results show that developing countries with high inequality tend to have higher levels of domestic credit and that domestic credit booms increase the probability of banking crises. We also find that developing economies display direct channels from inequality to banking crises without an association with credit booms. We find no consistent evidence that income inequality contributes to banking crises in advanced economies. In developing countries, the probability of banking crises increases dramatically as income inequality levels increase: The probability of a systemic banking crisis within three years, is 9.5% when the Gini is as low as 0.2 in developing countries and increases to 57.4% when the Gini is 0.4. These results are robust to several specifications.
Files in This Item
There are no files associated with this item.
Appears in
Collections
Division of International Studies > Division of International Studies > 1. Journal Articles

qrcode

Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.

Altmetrics

Total Views & Downloads

BROWSE