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We consider a moral hazard economy in banks and production to study how incentives for risk taking are affected by the quality of supervision. We show that low interest rates may generate excessive risk taking. Because of a pecuniary externality, the market equilibrium may not be optimal and...
Persistent link: https://www.econbiz.de/10010790384
resource windfall commands a lower level of public capital but a higher level of redistribution through transfers. Second …
Persistent link: https://www.econbiz.de/10012690171
We study credit card rewards as an ideal laboratory to quantify redistribution between consumers in retail financial … without rewards. We estimate an aggregate annual redistribution of $15 billion from less to more educated, poorer to richer …
Persistent link: https://www.econbiz.de/10015059603
This paper uses the Shapley Value decomposition technique to assess the factors behind the rise of inequality in China …. It finds that, in many ways, inequality may have been an inevitable by-product of China’s investment and export …-led growth model. Between Chinese households, we find that the most important factors explaining income inequality are location …
Persistent link: https://www.econbiz.de/10010790266
We document the evolution of poverty and inequality across Indian states during the recent period of rapid growth (2004 …
Persistent link: https://www.econbiz.de/10010790381
combination, on GDP and inequality. We focus on three dimensions of financial inclusion: access (determined by the size of … inclusion, GDP, inequality, and the distribution of gains and losses. …
Persistent link: https://www.econbiz.de/10011163128
findings indicate that increases in national income have a significant moderating effect on income inequality: a one percent … could help reduce income inequality. …
Persistent link: https://www.econbiz.de/10011242187
Despite the rapid economic growth and poverty reduction, inequality in Asia worsened during last two decades. We focus … suggests that fiscal redistribution, monetary policy aimed at macro stability, and structural reforms to stimulate trade … prosperity. In particular, scenario simulations based on our results suggests that the effect of expanding fiscal redistribution …
Persistent link: https://www.econbiz.de/10011242240
outcomes. It finds that while poverty has fallen across the region over the last two decades, inequality has increased …
Persistent link: https://www.econbiz.de/10011242249
dynamic measure permits us to focus on inequality as well as distinguish between countries where per capita income growth was …
Persistent link: https://www.econbiz.de/10011242387