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30. Januar 2018

The Determinants of Wealth Inequality: Finance, War, and Redistribution

Ein Vortrag von Roman Horvath (Charles University in Prague) im Rahmen der Seminarreihe des AB Ökonomie am IOS.
Datum: 30. Januar 2018
Zeit: Beginn 10 Uhr!
Ort: Leibniz-Institut für Ost-und Südosteuropaforschung (IOS), Landshuter Str. 4 (Raum 109)

We examine the determinants of wealth inequality using Bayesian model averaging to address regression model uncertainty stemming from the lack of encompassing model of wealth inequality. We use a global sample of 67 countries and include nearly 40 different determinants of wealth inequality capturing various economic, political,  financial, institutional, and geographical indicators. Our results show only a handful indicators explain cross-country differences in wealth inequality. More globalized countries with greater technological progress and higher savings rate exhibit greater inequality.  Higher inflation and conflicts such as civil wars tend to increase wealth inequality, too. We find that financial sector exerts a complex effect on wealth inequality. While greater financial depth increases inequality, better access to finance decreases it. The countries, which are able to attract foreign investment and which redistribute income more, exhibit a lower degree of wealth inequality.