TY - JOUR ID - 117756 TI - The Effect of Financial Development on Income Inequality in the Iran’s Economy Using Non-linear Cointegration Technique JO - International Journal of Management, Accounting and Economics JA - IJMAE LA - en SN - AU - Zarranejhad, Mansour AU - Hosseinpoor, Abdolkarim AU - Anvari, Ebrahim AD - Professor of Economics, University of Shahid Chamran, Ahwaz, Iran AD - Ph.D. of Economics, University of Persian Gulf, Bushehr, Iran AD - Ph.D. of Economics, University of Shahid Chamran, Ahwaz, Iran Y1 - 2015 PY - 2015 VL - 2 IS - 12 SP - 1420 EP - 1434 KW - Financial Markets KW - Income inequality KW - TVECM KW - Nonlinear Cointegration KW - Iran’s Economy DO - N2 - Different theories have different predictions about the relationship between financial development and income inequality that leads to two broad categories of thought with two conflicting theoretical hypotheses. This study examines the effect of financial development on income inequality in the Iran’s economy by using a Threshold Error Correction Model (TVECM) form 1971 to 2013. The results of TVAR.LR test show that the model has only one threshold. The results of the TVECM.Seo and TVECM.HS tests represent a threshold cointegration between the variables. Also, the results of Threshold Error Correction equation indicate that before reaching the threshold value, an increase in financial development causes increases in the Gini coefficient. But after reaching the threshold value, financial development reduces income inequality (decreases Gini coefficient) in the Iran’s economy. UR - https://www.ijmae.com/article_117756.html L1 - https://www.ijmae.com/article_117756_0ec04cefe413d6a9254ed902f30dc3c5.pdf ER -