This study explores, for the first time, how financial vulnerability affects incomeinequality across OECD countries, from 1990 to 2015. The empirics use a new financialvulnerability index constructed by Adrian and Duarte (2016). Through the methodologyof their modeling approach, panel GARCH and GMM methods, the findings indicatethat financial vulnerability exerts a negative impact on income equality conditions.The results survive certain definitions of income inequality and corruption, whilethey highlight the importance of financial stability conditions, with potential furtherrepercussions to the real economy.
"FINANCIAL VULNERABILITY AND INCOME INEQUALITY: NEW EVIDENCE FROM OECD COUNTRIES,"
Bulletin of Monetary Economics and Banking: Vol. 21:
3, Article 2.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol21/iss3/2