Persistence of High Income Inequality and Banking Crises: 1980-2010

Quaderni DSE Working Paper N° 885

29 Pages Posted: 6 Jun 2013

See all articles by Giorgio Bellettini

Giorgio Bellettini

University of Bologna - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Flavio Delbono

University of Bologna - School of Economics, Management, and Statistics

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Date Written: June 3, 2013

Abstract

Differently from Atkinson and Morelli (2011) who detect no clear link between increases in income inequality and systemic banking crises, we show that a large majority of crises occurred between 1982 and 2008 have been preceded by persistently high levels of income inequality. Such association is robust when considering Gini values for incomes after-tax as well as before-tax and transfers. Moreover, we investigate the pattern of income inequality levels before and after a group of banking crises and the relative levels of income inequality in a large sample of OECD countries that did not experience banking crises between 1980 and 2010.

Keywords: income inequality, Gini coefficient, banking crises

JEL Classification: D31, G21

Suggested Citation

Bellettini, Giorgio and Delbono, Flavio, Persistence of High Income Inequality and Banking Crises: 1980-2010 (June 3, 2013). Quaderni DSE Working Paper N° 885, Available at SSRN: https://ssrn.com/abstract=2274125 or http://dx.doi.org/10.2139/ssrn.2274125

Giorgio Bellettini (Contact Author)

University of Bologna - Department of Economics ( email )

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I-40126 Bologna
Italy
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HOME PAGE: http://sites.google.com/site/giorgiobellettiniwebpage/

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Flavio Delbono

University of Bologna - School of Economics, Management, and Statistics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

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