Inequality and credit growth in Russian regions

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F20%3A43916731" target="_blank" >RIV/62156489:43110/20:43916731 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.1016/j.econmod.2019.11.003" target="_blank" >https://doi.org/10.1016/j.econmod.2019.11.003</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.econmod.2019.11.003" target="_blank" >10.1016/j.econmod.2019.11.003</a>

Result language
angličtina
Original language name
Inequality and credit growth in Russian regions
Original language description
We test the Rajan hypothesis using data for Russian regions from 2000 (after the ruble crisis) to 2012 (before the introduction of international sanctions). The Rajan hypothesis predicts that rising income inequality leads politicians to expand credit for the poor, which in turn, fuels a consumer credit boom. Russia provides a unique research opportunity becaise it is a post-communist transition country with 75 diverse regions. We find that a rise in income inequality is positively correlated with personal loan growth in Russia. We also find a statistically weaker, albeit economically larger, relationship between economic inequality and corporate credit. Taken together, our results provide support for the Rajan hypothesis in a country with extreme regional differences and a long history of populist policies.
Czech name
—
Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50206 - Finance

Project
<a href="/en/project/GA19-22488S" target="_blank" >GA19-22488S: Interactions between the financial sector and the real economy</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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