Resource title

Financial development and inequality: Brazil 1985-1994

Resource image

image for OpenScout resource :: Financial development and inequality: Brazil 1985-1994

Resource description

We examine the impact of financial development on earnings inequality in Brazil in the 1980s and first half of the 1990s. The evidence based on 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 against recurrent poor macroeconomic performance, which is exemplified 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 distorting economic efficiency.

Resource author

Manoel Bittencourt

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/27454

Resource license

Adapt according to the presented license agreement and reference the original author.