Inequality comparisons require equivalence scales to account for differences in household size and composition. The multiplicity of equivalence scale models makes the sensitivity of the inequality calculations to the scale used a significant policy issue. Such an investigation based on unit records of two adult households from Italy, Australia, South Africa, Thailand, Peru, Philippines, India and Tanzania was our principal motivation. The equivalence scale varies across countries and between different types of children. Inequality rankings of countries, though not the inequality decomposition between households of different composition, are robust to the equivalence scale used.

No abstract

We employ stochastic dominance (SD) analysis on Australian unit records to investigate trends in inequality and relative welfare levels in Australia from 1983 to 2010. Using both income and expenditure distributions, we found that the economy was on a steady descent towards greater inequality between 1983 and 1993, and that this was followed by a 10-year period of recovery and growth, and gradual improvements in inequality levels. The economy's path to sustainable and equitable growth carried on towards the late 2000s, but this was interrupted by the 2007-08 global financial crisis which caused income inequality levels to deteriorate. Our SD tests show that the country's tax and transfer programmes have been consistent in moderating elevated levels of inequities observed in incomes over time, particularly in periods following economic contraction. Our subgroup results also show strong evidence of long-term disparities in the relative welfare levels of male-headed over female-headed households, of households with children over those without, and of couple-parents families over their single-parent counterparts.

We investigate the effect of financial integration on a banking crisis. In contrast to existing works, we allow for capital restrictions while studying the impact of financial integration on a banking crisis. Using firm‐level lending and borrowing information in the global market of syndicated loans; we generate aggregate measures of financial integration and examine how countries with capital flow restrictions thrive in the wake of a banking crisis. We concentrate on basic network measures of integration for a panel of 62 countries that allow for capital restriction at any time within the sample period. Financial integration increases the incidence of a banking crisis, and capital restrictions worsen a banking crisis. However, capital restrictions reduce the negative impact of financial integration on the incidence of a banking crisis. Thus, financial integration becomes beneficial when countries allow for some forms of capital control.

No abstract