FINANCIAL NON-NEUTRALITY; A LINK BETWEEN INCOME INEQUALITY AND AGGREGATED DEBT CHARACTERISTICS IN THE UNITED-STATES

Authors

Keywords:

Finance and Inequality, Socio-Economic Dynamics, Access to Finance, Loan Maturity Structure

Abstract

This paper studies socio-economic dynamics of deposit-taking institutions and their ability to affect inequality through the access and depth of the financial channels using a unique data set of aggregated statewide socio-economic indicators and banking data obtained from the Federal Deposit Insurance Corporation. Panel data econometric application to the data combined with a unique interpretation of the Gini and the median income indicators facilitates our understanding of inequality within the income distribution resulting from changes in loan through the ARDL technique. The major recommendation from this investigation is that financial activity is fundamental to the understanding of inequality dynamics.

Downloads

Published

2021-12-03

Issue

Section

Original Article