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| Content Provider | Springer Nature Link |
|---|---|
| Author | Bittencourt, Mael |
| Copyright Year | 2009 |
| Abstract | We examine the impact of financial development on earnings inequality in Brazil in the 1980s and first half of the 1990s. The evidence—based initially on time-series, and then on the relatively novel panel time-series data and analysis—shows that financial development had a significant and robust effect in reducing inequality during the period. We suggest that this is not only because the poorer can invest the acquired credit in either short or long-term productive activities, but also because those with access to financial markets can insulate themselves, via a process of financial adaptation, against recurrent poor macroeconomic performance, which is exemplified in Brazil by high rates of inflation. The main implication of the results is that a deeper and more active financial sector alleviates the high inequality seen in Brazil without the need for distortionary taxation. |
| Starting Page | 113 |
| Ending Page | 130 |
| Page Count | 18 |
| File Format | |
| ISSN | 15739414 |
| Journal | Economic Change and Restructuring |
| Volume Number | 43 |
| Issue Number | 2 |
| e-ISSN | 15740277 |
| Language | English |
| Publisher | Springer US |
| Publisher Date | 2009-10-08 |
| Publisher Place | Boston |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Financial development Inequality Brazil Economic Policy Economic Systems Macroeconomics/Monetary Economics Economic Growth International Economics Development Economics |
| Content Type | Text |
| Resource Type | Article |
| Subject | Economics and Econometrics |
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