Daisaka, Hiroshi; Furusawa, Taiji; Yanagawa, Noriyuki - In: Pacific Economic Review 19 (2014) 5, pp. 612-633
We analyse the effect of financial development and globalization (i.e. the reduction of trade costs) on income distribution when a financial institution is imperfect. Financial imperfection creates income inequality, by benefiting borrowers (entrepreneurs) and harming lenders through its effect...