Finance, distribution and the economic objective of financial cooperative institutions
Open accessAbstract
ABSTRACT This paper proposes a model where the structure rather than the size of the financial sector explains its influence on income distribution. Because of information asymmetries, a financial sector dominated solely by profit‐maximizing financial intermediaries will increase income and wealth inequality as it gives preferential access to credit for high‐income agents, whereas a diversified inclusive financial sector with alternative models of finance, like cooperatives, will reduce the inequality gap. No full convergence in income distribution can be realized through finance only and there is still a need for redistribution policies. Accordingly, an objective function for cooperative financial institutions should define a desired pricing behaviour that can increase the income of members at a rate higher than the average growth rate of the economy.
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Flagged first, then by citations
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- Authors
- KHAFAGY, A.
- Affiliations
- Ruhr University Bochum (DE)
- Corresponding author
- KHAFAGY, Amr
- ORCID
- KHAFAGY, Amr
- Venue
- Annals of Public and Cooperative Economics
- Publisher
- Wiley
- Published
- 2018-08-28
- Volume
- 90
- Issue
- 3
- Pages
- 487-511
- ISSN
- 1370-4788 (ISSN-L)
- 1467-8292
- OpenAlex
- W2889236482
- Cited by
- 10
- References
- 62
- Citations by year
- 2026: 1 · 2025: 4 · 2023: 2 · 2022: 1 · 2021: 1 · 2020: 1
- FWCI
- 0.84
- Type
- journal article
- Language
- en
- Open access
- green
- orcid.org
- Locations
- Annals of Public and Cooperative Economics (publishedVersion)
- Research Repository (University of Gloucestershire) (acceptedVersion)
- Research Repository (University of Gloucestershire) (submittedVersion)
- Funders
- Deutscher Akademischer Austauschdienst
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Cooperative Studies and Economics
- Social Sciences › Business, Management and Accounting › Accounting › Banking Systems and Strategies
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
- Keywords
- financial cooperatives, income distribution, wealth inequality, financial intermediaries, information asymmetry, access to credit, cooperative pricing, redistributive policy
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