Work

Income Inequality and Market Fragility: A Model and Some Empirics in the Political Economy of Finance, Part II

Year: 2019

Type: article

Abstract: In this analysis, we find significant links between an income and wealth inequality and financial market fragility. This analysis goes a long way toward explaining, among other things, a remarkably rich set of parallels that we find between the paired inequality and market calamity of 1928–1929 on the one hand and that of 2008–2009 on the other hand. In part I, our previous installment, we reviewed prior literature, elaborated our alternative model, and reported some preliminary empirical findings. The present installment reports more “granular” empirical results corroborating the presence and operation of the processes that we modeled in the previous piece.

Source: Challenge

DOI: 10.1080/05775132.2019.1656894

Authors: Robert Hockett, Daniel Dillon

Language: English

Topic: Economic Theory and Policy

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: bronze

Funders: U.S. Department of the Treasury, Nutrition Obesity Research Center, University of North Carolina

OpenAlex ID: W2979936840