Investigation of the Effect of Financial Development on Income   Distribution in Iran

Ghanbari, Ali; Aghaei, Majid; Rezagholizadeh, Mahdieh

Document Type : Research Paper

Authors

¹ The Faculty of Economics , University of Tarbiat Modarres

² Ph.d. Student, University of Tarbiat Modarres

Abstract

Abstract
Since the financial development can exert a significant effect on the distribution of income; in this paper we would investigate the relationship between the financial development and inequality in Iran. So, we estimate this relationship by applying the Generalized Method of Moment (GMM) Techniques and testing the alternative existing theories in the period of 1350 - 1385. Based on our results in this essay a negative and linear relationship between financial development and inequality is approved in Iran. However, empirical results show that there is little evidence supporting the non-linear inverted U-shaped hypothesis in Iran.

Keywords

References

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