Effect of Monetary Policy on Income Inequality - Spatial Quantile Regression Analysis

• Main Authors: Yu-Sung Kuo, 郭育菘
• Other Authors: 林俊宏
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/sn59yc

碩士 === 淡江大學 === 產業經濟學系碩士班 === 106 === There are many reasons can make income inequality expending, such as technological progress, human capital, globalization and changes in the labor market structure. However, when the economy depressed, the government often uses monetary policy to stimulate the economy, then many article show that the effect of monetary policy has positive and negative results. Therefore, this article follow Davide Furceri et. al., (2016), and studies whether the unexpected changes in the monetary policy of 56 countries in the world from 1998 to 2012 will increase the income inequality. In this paper, the variation of the Gini coefficient is used as the interpreted variable, and the change of the unanticipated monetary policy used as the explanatory variable. By using panel regression, quantile regression, spatial econometric regression and spatial quantile regression, we want to know three point. First, monetary policy change will effects income inequality; second, the monetary policy have the spatial effect; last, the effect of the monetary shock will have different effect in different country. Finally, this study leads to the following conclusions. First, when monetary policy tightening is not expected, the gini coefficient will be reduced in the short term, and increased in the medium term. Compared with Davide Furceri et. al., (2016), the gini coefficient is difference between the first and the second regression, the change is negative effect, and this result is just the opposite of Draghi (2016). Furthermore, when using regional data, spatial regression need to be used. The results of panel regression and spatial autocorrelation regression can be explained. Finally, The spatial quntile regression results show that in the low and middle quantile, the tight monetary policy will reduce the Gini coefficient, while the high quantile will increase the gini coefficient. The monetary shock will significantly effect gini coefficient with the economy in severe recession.