Does Credit Composition have Asymmetric Effects on Income Inequality? New Evidence from Panel Data

Download

10.3390ijfs6040082.pdf

Date

2018-9-25

Author

Seven, Ünal
Kilinc, Dilara
Coskun, Yener

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

163
views

144
downloads

This paper studied the effects of credit to private non-financial sectors on income inequality. In particular, we focused on the distinction between household and firm credits, and investigated whether these two types of credit had adverse effects on income inequality. Employing cross-section augmented cointegrating regressions and using balanced panel data for 30 developed and developing countries over the period from 1995 to 2013, we showed that firm credit reduced income inequality, whereas there was no significant impact of household credit on income inequality. We concluded that it was not the size of the private credit but its composition which mattered in reducing income inequality, due to the asymmetric effects of different types of credit.

Subject Keywords

Household credit, Firm credit, Income inequality, Credit composition, Mean group estimator

URI

https://hdl.handle.net/11511/51370

Journal

International Journal of Financial Studies

DOI

https://doi.org/10.3390/ijfs6040082

Collections

Department of Business Administration, Article

Suggestions

OpenMETU
Core

The Effects of different types of credit growth in developing countries in comparison to developed countries Uçar, Ezgi; Cömert, Hasan; Department of Economics (2019) This thesis aims to identify the relationship between credit booms and banking crises. Credit is disaggregated into credit to non-financial corporations and credit to households and non-profit institutions serving households. The analysis covers 10 developing and 10 developed countries between 1994 and 2017. Method of Mendoza and Terrones (2008) is followed in identification of booms. Signal extraction analysis is employed to identify the most appropriate smoothing parameter and threshold coefficient. 1600 ...
The effect of the global financial crisis on household income, inequality and poverty in Turkey Şeker, Sırma Demir; Dayıoğlu Tayfur, Meltem (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2016-4) Using a nationally representative large scale micro data, we investigate the effect of the Global Financial Crisis (GFC) on household income, inequality and poverty in Turkey. In assessing the impact of the GFC, we take 2007 (pre-crisis year) as the benchmark and compare 2009 to 2007 and to 2011 (post-crisis period). We find that (real) household disposable income drops by 3.6 percent from 2007 to 2009, but that the decline in equivalized income is lower at 1.2 percent. Income inequality decreases over...
Does the digital sector produce surplus value? The case of Facebook Tonak, E. Ahmet (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2020-12) This article shows that the digital economy can, as opposed to the opinion of many, be analysed on the basis of Marx’s theory of surplus value and profit. What we have shown through a study of the political economy of Facebook is that the product produced by the company in question is a commodity just like others. Moreover, the surplus value produced by the productive workers of Facebook is the main source of the profits of the company and the wages of its unproductive workers.
Do R& D expenditures matter for labor productivity in OECD countries? an unresolved question Erdil, Erkan; Çorakcı, Ayşegül (2013-01-01) The aim of this study is to analyze the relationship between labor productivity and R&D expenditures. We have tested this relationship using a panel of 22 OECD countries that covers the period 1991-2003. A Cobb-Douglas production function was estimated in growth form where physical capital, knowledge capital, human capital, and labor stock were included as the factors of production. The estimation results that also controlled for the effect of openness, and R&D spillovers implied a positive long-run R&D ela...
Is there an informal employment wage penalty in Egypt? Evidence from quantile regression on panel data Tansel, Aysıt; Ozdemir, Zeynel Abidin (2020-06-01) This is the first study that uses panel data to assess the magnitude of the informal sector wage gap in Egypt. We consider the private sector male wage earners in Egypt and examine their wage distribution during 1998-2012 using the Egyptian Labor Market Panel Survey. We estimate Mincer wage equations both at the mean and at different quantiles of the wage distribution taking into account observable and unobservable characteristics with a fixed effect model. We also consider the possibility of nonlinearity i...

Citation Formats

Ü. Seven, D. Kilinc, and Y. Coskun, “Does Credit Composition have Asymmetric Effects on Income Inequality? New Evidence from Panel Data,” International Journal of Financial Studies, 2018, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/51370.