Reports
Discussion Papers
No.958 Effects of Capital Flow Management Measures on Wealth Inequality: New Evidence from Counterfactual Estimators
by Yang Zhou, Shigeto Kitano
March 2025
ABSTRACT
We provide cross-country evidence that variations in capital flow management measures (CFMs) result in differences in wealth inequality and distribution by using counterfactual estimators for causal inference. Diverging from previous studies, we analyze the effects of ten distinct asset-specific CFMs on wealth inequality and distribution. While we obtain consistent results of aggregate CFMs with previous studies, our results of asset-specific CFMs are quite heterogeneous. Our result implies that the effects of CFMs on wealth inequality and distribution significantly depend on asset categories as well as income levels and capital flow directions.
Keywords: Capital flow management measures (CFMs), Wealth inequality, Gini coefficient, Wealth distribution, Counterfactual estimator
JEL classification: D63, E21, F38, G15, G28, O16
PDF available at https://hdl.handle.net/2344/0002001296
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