Wealth Inequality, Network Topology and Financial Instability

This paper asks if two, otherwise identical, economies were distinguished only by their distributions of wealth, are they equally stable in response to a random shock? A theoretical financial network model is proposed to understand the relationship between wealth inequality and financial crises. In a financial network, financial assets link individual asset and liability holders to form a web of economic connections. The total connectivity of an individual is described by their degree, and the overall distribution of connections in the network is imposed through a degree distribution--equivalent to the wealth distribution as incoming connections represent assets and outgoing connections liabilities. A network's topology varies with the level of wealth inequality and total wealth and together, simulations show, they determine network contagion in the event of a random negative income shock to some individual. Random network simulations, whereby each financial connection is randomly placed, reveal that increasing wealth inequality makes a wealthy network less stable--as measured by the share of individuals failing financially or the decline in financial asset values. These results suggest a unique architectural role for accumulated assets and their distribution in macro-financial stability.

Relationship Between Commercial Bank Availability and Income Inequality

The objective of this study is to examine the relationship between commercial bank branches availability and income inequality. Further, the study also assesses the interaction effect of corruption and commercial bank availability on income inequality. The present study uses panel data estimation methods for analysing the above relationship for SAARC countries (Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka). The analysis suggests that a positive relationship exists between income inequality and financial availability in the initial stages. However, as the financial institutions reach a level of maturity and more people are integrated in the financial network, the level of income inequality starts reducing. Moreover, increase in financial availability helps in reducing income inequality when it is supported by less corrupt institutions. Policymakers should focus on reducing the level of corruption so as to enhance the effectiveness of the penetration of commercial bank branches.

RELATIONSHIP BETWEEN COMMERCIAL BANK AVAILABILITY AND INCOME INEQUALITY - EVIDENCE FROM SAARC COUNTRIES

The objective of this study is to examine the relationship between commercial bank branches availability and income inequality. Further the study also assesses the interaction effect of corruption and commercial bank availability on income inequality. The present study uses panel data estimation methods for analysing the above relationship for SAARC countries (Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka). The analysis suggests that a positive relationship exists between income inequality and financial availability in the initial stages. However, as the financial institutions reach a level of maturity and more people are integrated in the financial network, the level of income inequality starts reducing. Moreover, increase in financial availability helps in reducing income inequality when it is supported by less corrupt institutions. Policymakers should focus on reducing the level of corruption so as to enhance the effectiveness of the penetration of commercial bank branches.

Relationship Between Commercial Bank Availability and Income Inequality

The objective of this study is to examine the relationship between commercial bank branches availability and income inequality. Further the study also assesses the interaction effect of corruption and commercial bank availability on income inequality. The present study uses panel data estimation methods for analysing the above relationship for SAARC countries (Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka). The analysis suggests that a positive relationship exists between income inequality and financial availability in the initial stages. However, as the financial institutions reach a level of maturity and more people are integrated in the financial network, the level of income inequality starts reducing. Moreover, increase in financial availability helps in reducing income inequality when it is supported by less corrupt institutions. Policymakers should focus on reducing the level of corruption so as to enhance the effectiveness of the penetration of commercial bank branches.

Digital Payment: Perspektif Gender dalam Pemilihan Jasa Pembayaran Digital

In today's digital era buyers and sellers are using digital payment applications with non-cash payment transactions, in this transaction, there are other parties involved, namely, digital payment providers, where the digital payment provider from the buyer will continue the transaction to the financial network used by the seller. quickly, safely and cheaply, and in real-time, so that immediately the buyer and seller know whether the transaction was successful or not because they are using their smartphone devices. Gender differences, between men and women, can lead to differences in terms of spending with transactions through digital payments, therefore this study will look at whether there are differences between men and women in terms of using digital payments. The research approach used is quantitative research with the help of a questionnaire. A total of 104 users were involved in this study to be asked for information about experiences in using various payments provided by four popular digital payment providers in Indonesia, namely Gopay, Ovo, LinkAja, and Dana. For data analysis, this study uses a different test analysis for each sample, and the results show that there is no difference in the use of digital payments seen from a gender perspective.

Financial Network Connectedness and Systemic Risk During the COVID-19 Pandemic

The COVID-19 pandemic causes a huge number of infections. The outbreak of COVID-19 has not only caused substantial healthcare impacts, but also affected the world economy and financial markets. In this paper, we study the effect of the COVID-19 pandemic on financial market connectedness and systemic risk. Specifically, we test dynamically whether the network density of pandemic networks constructed by the number of COVID-19 confirmed cases is a leading indicator of the financial network density and portfolio risk. Using rolling-window Granger-causality tests, we find strong evidence that the pandemic network density leads the financial network density and portfolio risk from February to April 2020. The findings suggest that the COVID-19 pandemic may exert significant impact on the systemic risk in financial markets.