Analysis of the Wealth Inequality Dynamics in Bulgaria: Different Approach

Abstract

This paper aims to analyze the wealth inequality in Bulgaria during the period Q4.2005-Q2.2015, using two types of gross wealth Gini coefficients, derived through households’ bank deposits and bank loans cumulative distributions. Bank deposits, as a major form of financial wealth for Bulgarian individuals, are supposed to give a fair representation of total gross wealth of households. In an untraditional way bank loans Gini coefficient is assumed to fairly represent gross wealth inequality. The dynamics of derived Gini coefficients suggests that gross wealth inequality is steadily rising in spite of recent divergence between deposit and loans Gini coefficients. Inequality should be addressed for overcoming the buildup of systematic risks.