Distributional Effects of Crises: The Role of Financial Transfers

36 Pages Posted: 30 Dec 2004

See all articles by Marina C. Halac

Marina C. Halac

affiliation not provided to SSRN

Sergio L. Schmukler

World Bank - Development Research Group (DECRG)

Date Written: May 15, 2003

Abstract

Financial crises affect income distribution via different channels. We argue that financial transfers is an important channel, which has been overlooked by the literature. By analyzing data from the Mexican (1994-1995) and Argentine (2001-2002) crises, we investigate two types of financial transfers. First, we study transfers to the financial sector, going from non-participants to participants of the financial sector. Second, we explore transfers within the financial sector, which are transfers among participants of the financial sector, as those from small to large and foreign depositors. Our analysis suggests that financial transfers increase income inequality.

Keywords: Financial crises, distributional effects, financial transfers, inequality, income distribution, Argentine crisis, Mexican crisis

JEL Classification: E44, E60, F41, G20, I32

Suggested Citation

Halac, Marina C. and Schmukler, Sergio, Distributional Effects of Crises: The Role of Financial Transfers (May 15, 2003). World Bank Policy Research Working Paper No. 3173. Available at SSRN: https://ssrn.com/abstract=408100

Marina C. Halac (Contact Author)

affiliation not provided to SSRN ( email )

Sergio Schmukler

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN MC 3-301
Washington, DC 20433
United States
202-458-4167 (Phone)
202-522-3518 (Fax)

HOME PAGE: http://www.worldbank.org/en/about/people/s/sergio-schmukler

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