Inequality Overhang is popular PDF and ePub book, written by Francesco Grigoli in 2017-03-30, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, Inequality Overhang can be Read Online from any device for your convenience.
Inequality Overhang Book PDF Summary
The linearity of the relationship between income inequality and economic development has been long questioned. While theory provides arguments for which the shape of relationship may be positive for low levels of inequality and negative for high ones, most of the empirical literature assumes a linear specification finding conflicting results. Employing an innovative empirical approach robust to endogeneity, we find pervasive evidence of nonlinearities. In particular, similar to the debt overhang literature, we identify an inequality overhang level in that the slope of the relationship between income inequality and economic development switches from positive to negative at a net Gini of about 27 percent. We also find that in an environment characterized by widespread financial inclusion and high income concentration, rising income inequality has a larger negative impact on economic development because banks may curtail credit to customers at the lower end of the income distribution. On the positive side, a sufficiently high female labor participation can act as a shock absorber reducing such negative impact, possibly through a more efficient allocation of resources.
Detail Book of Inequality Overhang PDF
- Author : Francesco Grigoli
- Release : 30 March 2017
- Publisher : International Monetary Fund
- ISBN : 9781475590074
- Genre : Business & Economics
- Total Page : 27 pages
- Language : English
- PDF File Size : 16,6 Mb
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