Redistributive effects of monetary policy and financial development
| Variable | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| Gini (t-1) | 1.034*** (0.015) | 1.019*** (0.013) | 1.034*** (0.007) | 1.046*** (0.012) |
| Gdppc | 0.152*** (0.040) | 0.249*** (0.051) | 0.041 (0.049) | 5.368*** (0.888) |
| MP | 0.010*** (0.003) | 0.017*** (0.002) | 0.010*** (0.003) | 0.007** (0.003) |
| FD | −1.062*** (0.195) | −2.485*** (0.619) | ||
| FD×MP | −0.031*** (0.011) | |||
| FI | −1.397*** (0.254) | |||
| FI×MP | −0.042*** (0.005) | |||
| FM | 0.831 (0.547) | |||
| FM×MP | −0.110* (0.064) | |||
| gdppc² | −0.372*** (0.065) | |||
| FD² | 4.395*** (1.192) | |||
| Constant | −2.459*** (0.746) | −2.273*** (0.748) | −1.860*** (0.389) | −20.960*** (3.212) |
| Obs | 418 | 418 | 418 | 418 |
| N | 32 | 32 | 32 | 32 |
| Wald (p-value) | 0.00 | 0.00 | 0.00 | 0.00 |
| Sargan[p-value] | 20.22[0.99] | 22.61[0.99] | 17.41[0.99] | 24.87[0.99] |
| AR(1) test[p-value] | −3.92[0.00] | −3.94[0.00] | −4.15[0.00] | −3.64[0.00] |
| AR(2) test[p-value] | 1.03[0.30] | 1.24[0.21] | 1.35[0.18] | 1.39[0.16] |
| Variable | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| Gini (t-1) | 1.034*** (0.015) | 1.019*** (0.013) | 1.034*** (0.007) | 1.046*** (0.012) |
| 0.152*** (0.040) | 0.249*** (0.051) | 0.041 (0.049) | 5.368*** (0.888) | |
| 0.010*** (0.003) | 0.017*** (0.002) | 0.010*** (0.003) | 0.007** (0.003) | |
| −1.062*** (0.195) | −2.485*** (0.619) | |||
| −0.031*** (0.011) | ||||
| −1.397*** (0.254) | ||||
| −0.042*** (0.005) | ||||
| 0.831 (0.547) | ||||
| −0.110 | ||||
| −0.372*** (0.065) | ||||
| 4.395*** (1.192) | ||||
| −2.459*** (0.746) | −2.273*** (0.748) | −1.860*** (0.389) | −20.960*** (3.212) | |
| 418 | 418 | 418 | 418 | |
| 32 | 32 | 32 | 32 | |
| 0.00 | 0.00 | 0.00 | 0.00 | |
| 20.22[0.99] | 22.61[0.99] | 17.41[0.99] | 24.87[0.99] | |
| −3.92[0.00] | −3.94[0.00] | −4.15[0.00] | −3.64[0.00] | |
| 1.03[0.30] | 1.24[0.21] | 1.35[0.18] | 1.39[0.16] |
Notes:
This table presents the results from the regressions of income inequality on GDP per capita, monetary policy (MP), financial development (FD) and the interaction between monetary policy and financial development. The dependent variable is the net Gini coefficient. Columns 2 and 3 consider respectively, the financial institution (FI) and financial markets (FM) aspects of the financial system. Column 4 captures the hypothesized non-linear relationship between growth, financial development and inequality. *, ** and *** denote significance at the 10, 5 and 1% levels. Standard errors in parentheses. The results reported are for the two-step estimations and 2 maximum lags of the dependent variable are specified as instruments. For the estimation involving FM, the instrument specification includes 3 maximum lags of the dependent variables
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