Event

Research Seminar: Credit and Income Inequality

Join Professor Manthos Delis of Montpellier Business School as he discusses the effect of credit constraints on income and it's impact on finance-inequality.

  • Wed 25 Apr 18

    14:00 - 16:00

  • Colchester Campus

    EBS.2.45

  • Event speaker

    Prof Manthos DELIS (Montpellier Business School)

  • Event type

    Lectures, talks and seminars

  • Event organiser

    Essex Business School

  • Contact details


    01206 87 2364

We study the effect of credit constraints on individuals’ income, using a unique data set of business loan applications to a single bank from individuals that are majority owners of small and medium-sized firms.

Event Abstract

The credit score assigned by the bank creates a sharp discontinuity in the decision to originate the loan or not.

We show that a loan origination increases the recipients’ income five years onward by approximately 11% compared to denied applicants.

Our results are robust to the use of individuals’ wealth as the outcome variable and several other re-specifications, and have important implications for the finance-inequality nexus.

Booking

This is an open event, there is no need to book. Please feel free to join us with your colleagues, classmates and friends.

Speaker Bio

Manthos Delis is a Professor of Financial Economics and Banking at Montpellier Business School.

He has a PhD in 2007 from AUEB, Greece, an MSc from York University, Canada, and a BA (honors) from Western University, Canada.

He previously was at the University of Surrey (Professor, 2012-2017), Cass (SL, 2011-2012), and University of Ioannina (L, 2008-2011).

His research interests cover banking, corporate finance and governance, operations research, and economics of inequality.

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