The paper examines how changes in legislation can affect income distribution. It proposes as an example how the evolution of financial regulation in USA influenced the distribution of income by allowing the banking industry to growth at higher rates than the rest of the economy. The increase in the sell of the financial services raised the profits of this sector and generated an intense struggle on the distribution of income to the other sectors or groups of the economy. At turn, the higher profits earned by the banking sector allowed it to increase its influence on the social, cultural and political life, thus introducing laws that further favoured the earnings of this sector. The consequence of this concentration of power has however been an increase in the systemic risk, which has produced in the end the financial crisis of 2007-2008. The paper also shows that the crisis has not reduced the power enjoyed by the banking sector, which has still been able to influence the reforms of financial regulation introduced in 2010.

Teoria economica, scelte legislative e giustizia distributiva / Panico, Carlo. - (2015), pp. 69-98.

Teoria economica, scelte legislative e giustizia distributiva

PANICO, CARLO
2015

Abstract

The paper examines how changes in legislation can affect income distribution. It proposes as an example how the evolution of financial regulation in USA influenced the distribution of income by allowing the banking industry to growth at higher rates than the rest of the economy. The increase in the sell of the financial services raised the profits of this sector and generated an intense struggle on the distribution of income to the other sectors or groups of the economy. At turn, the higher profits earned by the banking sector allowed it to increase its influence on the social, cultural and political life, thus introducing laws that further favoured the earnings of this sector. The consequence of this concentration of power has however been an increase in the systemic risk, which has produced in the end the financial crisis of 2007-2008. The paper also shows that the crisis has not reduced the power enjoyed by the banking sector, which has still been able to influence the reforms of financial regulation introduced in 2010.
2015
978-88-495-2998-2
Teoria economica, scelte legislative e giustizia distributiva / Panico, Carlo. - (2015), pp. 69-98.
File in questo prodotto:
File Dimensione Formato  
09_Panico_conferenza sui saperi.pdf

non disponibili

Descrizione: teoria economica, scelte giuridiche e giustizia distributiva
Tipologia: Documento in Pre-print
Licenza: Accesso privato/ristretto
Dimensione 314.6 kB
Formato Adobe PDF
314.6 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11588/630965
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact