Publication Type
Master Thesis
Version
publishedVersion
Publication Date
2008
Abstract
This paper conducts a comprehensive analysis to understand how stock market ratios affect net income inequality. The study of how finance impacts income distribution is relevant as the income distribution of a nation influences savings decisions, resource allocation, innovation incentives and public policy and hence impacts the process of economic development. Using a cross-sectional data set of 68 countries and panel data set of 61 countries from 1975 to 2005, I apply cross-sectional OLS and panel regressions to look at how stock market size, liquidity, and activity impact income inequality. While stock market size is found to strongly impact income inequality in an inverse-U manner, weak evidence is found for stock market liquidity in reducing income inequality. No strong evidence is however found for stock market activity to affect income inequality.
Keywords
economic development, income distribution, income inequality, stock market, wealth
Degree Awarded
MSc in Economics
Discipline
Finance | Portfolio and Security Analysis
Supervisor(s)
HOON, Hian Teck
Publisher
Singapore Management University
City or Country
Singapore
Citation
MATHEW, Elizabeth.
Stock Markets and Income Inequality: A Cross-Country Study. (2008).
Available at: https://ink.library.smu.edu.sg/etd_coll/37
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.