Finance and inequality : Theory and evidence

Demirgüç-Kunt, Asli; Levine, Ross

dc.creator	Demirgüç-Kunt, Asli
dc.creator	Levine, Ross
dc.date	2012-03-19T19:11:00Z
dc.date	2012-03-19T19:11:00Z
dc.date	2009-06-01
dc.date.accessioned	2023-02-17T21:10:20Z
dc.date.available	2023-02-17T21:10:20Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090618110843
dc.identifier	http://hdl.handle.net/10986/4161
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/245198
dc.description	This paper critically reviews the literature on finance and inequality, highlighting substantive gaps in the literature. Finance plays a crucial role in most theories of persistent inequality. Unsurprisingly, therefore, economic theory provides a rich set of predictions concerning both the impact of finance on inequality and about the relevant mechanisms. Although subject to ample qualifications, the bulk of empirical research suggests that improvements in financial contracts, markets, and intermediaries expand economic opportunities and reduce inequality. Yet, there is a shortage of theoretical and empirical research on the potentially enormous impact of formal financial sector policies, such as bank regulations and securities law, on persistent inequality. Furthermore, there is no conceptual framework for considering the joint and endogenous evolution of finance, inequality, and economic growth.
dc.language	English
dc.relation	Policy Research Working Paper ; No. 4967
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCESS TO CREDIT
dc.subject	ACCESS TO EXTERNAL FINANCE
dc.subject	ACCESS TO FINANCE
dc.subject	ACCESS TO FINANCIAL SERVICES
dc.subject	ADVERSE SELECTION
dc.subject	ANNUAL EARNINGS
dc.subject	BANK BRANCHES
dc.subject	BANK COMPETITION
dc.subject	BANKING SERVICES
dc.subject	BANKING SYSTEM
dc.subject	BANKING SYSTEMS
dc.subject	BANKS
dc.subject	BEQUEST
dc.subject	BIASES
dc.subject	BLACK WORKERS
dc.subject	BORROWER
dc.subject	BORROWING
dc.subject	BUSINESS ACUMEN
dc.subject	BUSINESS OPPORTUNITIES
dc.subject	CAPITAL ACCUMULATION
dc.subject	CAPITAL INVESTMENT
dc.subject	CAPITAL INVESTMENTS
dc.subject	CAPITAL MARKETS
dc.subject	CASH FLOW
dc.subject	COLLATERAL
dc.subject	COMMERCIAL BANK
dc.subject	COMMERCIAL BANKS
dc.subject	CONSUMERS
dc.subject	CONTRIBUTIONS
dc.subject	CREDIT CONSTRAINTS
dc.subject	CREDIT MARKET
dc.subject	CREDIT MARKETS
dc.subject	CREDIT PROGRAM
dc.subject	CREDIT PROGRAMS
dc.subject	CREDIT RATIONING
dc.subject	CREDIT-SCORING
dc.subject	DEBTS
dc.subject	DEPOSIT
dc.subject	DEREGULATION
dc.subject	DIMINISHING RETURNS
dc.subject	DIRECT CREDIT
dc.subject	DIRECTED CREDIT
dc.subject	DISCRIMINATION
dc.subject	DISTRIBUTION OF WEALTH
dc.subject	DIVERSIFICATION
dc.subject	DURABLE GOODS
dc.subject	EARNINGS
dc.subject	ECONOMIC ACTIVITY
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC EFFICIENCY
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC OPPORTUNITIES
dc.subject	ECONOMIC OPPORTUNITY
dc.subject	ECONOMIC OUTCOMES
dc.subject	ECONOMIC PERFORMANCE
dc.subject	ECONOMIC THEORY
dc.subject	ECONOMIES OF SCALE
dc.subject	ELIGIBILITY CRITERION
dc.subject	EMPLOYER
dc.subject	EMPLOYERS
dc.subject	ENDOWMENTS
dc.subject	ENROLLMENT
dc.subject	ENTREPRENEUR
dc.subject	ENTREPRENEURIAL ABILITY
dc.subject	ENTREPRENEURIAL ACTIVITIES
dc.subject	ENTREPRENEURIAL ACTIVITY
dc.subject	ENTREPRENEURIAL BEHAVIOR
dc.subject	ENTREPRENEURIAL EFFORT
dc.subject	ENTREPRENEURIAL OPPORTUNITIES
dc.subject	ENTREPRENEURS
dc.subject	ENTRY BARRIERS
dc.subject	EQUALITY OF OPPORTUNITY
dc.subject	EQUILIBRIUM
dc.subject	EXPECTED RETURN
dc.subject	EXPENDITURES
dc.subject	EXTERNAL FINANCE
dc.subject	EXTERNALITIES
dc.subject	EXTERNALITY
dc.subject	FAMILIES
dc.subject	FAMILY INCOME
dc.subject	FINANCE EDUCATION
dc.subject	FINANCIAL ARRANGEMENTS
dc.subject	FINANCIAL CONSTRAINT
dc.subject	FINANCIAL CONSTRAINTS
dc.subject	FINANCIAL DEPTH
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL DEVELOPMENTS
dc.subject	FINANCIAL GLOBALIZATION
dc.subject	FINANCIAL INNOVATION
dc.subject	FINANCIAL INNOVATIONS
dc.subject	FINANCIAL INSTITUTION
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL INTERMEDIARIES
dc.subject	FINANCIAL INTERMEDIARY
dc.subject	FINANCIAL INTERMEDIATION
dc.subject	FINANCIAL LIBERALIZATION
dc.subject	FINANCIAL MARKET
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL REGULATIONS
dc.subject	FINANCIAL SECTOR POLICIES
dc.subject	FINANCIAL SECTOR REFORMS
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL SYSTEM
dc.subject	FINANCIAL SYSTEMS
dc.subject	FINANCIAL TRANSACTIONS
dc.subject	FINANCING NEEDS
dc.subject	FIXED COST
dc.subject	FIXED COSTS
dc.subject	FORMAL FINANCIAL SECTOR
dc.subject	FUTURE RESEARCH
dc.subject	GDP
dc.subject	GDP PER CAPITA
dc.subject	GINI COEFFICIENT
dc.subject	GREATER ACCESS
dc.subject	GROWTH OPPORTUNITIES
dc.subject	GROWTH RATE
dc.subject	HOUSEHOLD ACCESS
dc.subject	HOUSEHOLD EXPENDITURES
dc.subject	HOUSEHOLD WELFARE
dc.subject	HOUSEHOLDS
dc.subject	HUMAN CAPITAL
dc.subject	IMPERFECT CREDIT
dc.subject	INCOME LEVEL
dc.subject	INCOME LEVELS
dc.subject	INCOMES
dc.subject	INCREASE IN INCOME
dc.subject	INEFFICIENCY
dc.subject	INEQUALITIES
dc.subject	INEQUALITY
dc.subject	INHERITANCE
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL FINANCE
dc.subject	INVESTMENT OPPORTUNITIES
dc.subject	INVESTMENT RETURNS
dc.subject	LABOR MARKET
dc.subject	LABOR MARKETS
dc.subject	LACK OF ACCESS
dc.subject	LANDLESS HOUSEHOLDS
dc.subject	LENDER
dc.subject	LENDERS
dc.subject	LEVEL OF ASSETS
dc.subject	LIABILITY
dc.subject	LIMITED ACCESS
dc.subject	LIMITED ACCESS TO FINANCE
dc.subject	LIQUIDITY
dc.subject	LOAN
dc.subject	LOAN DECISION
dc.subject	LOCAL BANKS
dc.subject	LORENZ CURVE
dc.subject	LOW INCOME
dc.subject	LOW-INCOME
dc.subject	LOW-INCOME INDIVIDUALS
dc.subject	LOWER-INCOME FAMILIES
dc.subject	LOWER-INCOME WORKERS
dc.subject	MARGINAL COST
dc.subject	MARGINAL PROPENSITY TO SAVE
dc.subject	MARKET CONDITIONS
dc.subject	MARKET CONSTRAINTS
dc.subject	MICRO-CREDIT
dc.subject	MICRO-ENTERPRISES
dc.subject	MICRO-ENTREPRENEURS
dc.subject	MICROCREDIT
dc.subject	MICROECONOMIC ANALYSES
dc.subject	MICROFINANCE
dc.subject	MICROFINANCE INSTITUTION
dc.subject	MICROFINANCE INSTITUTIONS
dc.subject	MICROFINANCE LOANS
dc.subject	MONOPOLY
dc.subject	MORAL HAZARD
dc.subject	NEW BUSINESSES
dc.subject	NEW ENTREPRENEURS
dc.subject	OVERHEAD COSTS
dc.subject	PER CAPITA INCOME
dc.subject	PHYSICAL ASSETS
dc.subject	PHYSICAL CAPITAL
dc.subject	POLITICAL ECONOMY
dc.subject	POOR BORROWERS
dc.subject	PROBABILITY
dc.subject	PRODUCT MARKETS
dc.subject	PRODUCTIVITY INCREASES
dc.subject	PROFITABILITY
dc.subject	PROPERTY RIGHTS
dc.subject	PUBLIC EDUCATION
dc.subject	PUBLIC GOODS
dc.subject	RATE OF RETURN
dc.subject	RATES OF RETURN
dc.subject	RECEIPT
dc.subject	RENTS
dc.subject	REPAYMENT
dc.subject	RESERVE BANK
dc.subject	RESOURCE ALLOCATION
dc.subject	RURAL BRANCHES
dc.subject	SALES
dc.subject	SAVERS
dc.subject	SAVING BEHAVIOR
dc.subject	SAVINGS
dc.subject	SAVINGS BEHAVIOR
dc.subject	SAVINGS RATE
dc.subject	SAVINGS RATES
dc.subject	SECURITIES
dc.subject	SELF-EMPLOYMENT
dc.subject	SKILLED WORKERS
dc.subject	SMALL BUSINESS
dc.subject	SMALL BUSINESSES
dc.subject	SMALL ENTERPRISES
dc.subject	START-UP
dc.subject	TAX BURDEN
dc.subject	TAX RATE
dc.subject	TAX RATES
dc.subject	TAX REVENUES
dc.subject	TOTAL OUTPUT
dc.subject	TRANSACTION
dc.subject	TRANSACTION COSTS
dc.subject	TRANSACTIONS COSTS
dc.subject	TRANSITION ECONOMIES
dc.subject	VALUABLE
dc.subject	VILLAGE
dc.subject	VILLAGES
dc.subject	WAGE
dc.subject	WAGE RATES
dc.subject	WAGES
dc.subject	WEALTH
dc.title	Finance and inequality : Theory and evidence
dc.type	Publications & Research :: Policy Research Working Paper