Wealth inequality and financial development: Revisiting the symmetry breaking mechanism

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dc.contributor.author Zhang, Haiping en
dc.date.accessioned 2017-06-21T04:48:37Z en
dc.date.issued 2017-04 en
dc.identifier.citation Economic Theory 63(4):997-1025 Apr 2017 en
dc.identifier.issn 0938-2259 en
dc.identifier.uri http://hdl.handle.net/2292/33688 en
dc.description.abstract Matsuyama (Econometrica 72(3):853–884, 2004) shows that financial integration may lead to income polarization among inherently identical countries, if these countries are financially underdeveloped, a result he calls “symmetry breaking.” By introducing the minimum investment requirement and within-country wealth inequality into Matsuyama’s framework, I show that wealth inequality is as important as financial development in determining the possibility of symmetry breaking. I then address three practical issues in this model, e.g., the conditions of financial integration, the domestic financial crisis and capital controls, and the world interest rate changes and income volatility. en
dc.description.uri https://catalogue.library.auckland.ac.nz/primo-explore/fulldisplay?docid=uoa_alma21160318270002091&context=L&vid=NEWUI&search_scope=Combined_Local&tab=books&lang=en_US en
dc.publisher Springer Verlag en
dc.relation.ispartofseries Economic Theory en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.title Wealth inequality and financial development: Revisiting the symmetry breaking mechanism en
dc.type Journal Article en
dc.identifier.doi 10.1007/s00199-016-0977-0 en
pubs.issue 4 en
pubs.begin-page 997 en
pubs.volume 63 en
dc.rights.holder Copyright: Springer Verlag en
pubs.author-url https://ideas.repec.org/a/spr/joecth/v63y2017i4d10.1007_s00199-016-0977-0.html en
pubs.end-page 1025 en
dc.rights.accessrights http://purl.org/eprint/accessRights/RestrictedAccess en
pubs.subtype Article en
pubs.elements-id 538787 en
pubs.org-id Business and Economics en
pubs.org-id Economics en
dc.identifier.eissn 1432-0479 en
pubs.record-created-at-source-date 2019-05-27 en
pubs.online-publication-date 2016-05-27 en

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