1. China Academy of Electronic and Information Technology,Beijing 100041, China; 2. CETC Research Center for Development and Strategy,Beijing 100043, China
Abstract With the help of the OLG model, this paper obtains the theoretical mechanism of the impact of macro-prudential policies on income inequality, and then analyzes the impact of macro-prudential policies on equity based on the unbalanced panel data of 59 countries from 2000 to 2018. There are following empirical results: (1) There is a negative correlation between the housing loan value ratio (LTV) cap and the Gini coefficient, indicating that the macro-prudential policy of lowering the upper limit of LTV can widen the gap of residents’ income distribution, and the effect is more significant in emerging market countries. (2) When the upper limit of LTV is lower, lowering LTV cap further expands the level of income inequality. Conversely, when the value of LTV is higher, lowering LTV cap reduces the level of income inequality. And the policy effect of the macro-prudential tool exhibits heterogeneous characteristics. (3) After replacing the macro-prudential policy of lowering LTV cap with the policies of increasing the deposit reserve ratio, the empirical conclusion remains basically unchanged. The empirical results show high robustness under different income inequality variables, different dummy variables and different panel models. As for China is concerned, when formulating macro-prudential policies, the People’s Bank of China should consider the income redistribution of the policy, so as to ensure the effectiveness of the policy while taking into account the fairness of the policy.
2022, Vol. 39 
