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Inequality and development: Evidence from semiparametric estimation with panel data

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  • Zhou, Xianbo
  • Li, Kui-Wai

Abstract

Evidences from nonparametric and semiparametric unbalanced panel data models with fixed effects show that Kuznet’s inverted-U relationship is confirmed when economic development reaches a threshold. The model tests justify semiparametric specification. The integrated net contribution of control variables to inequality reduction is significant.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 113 (2011)
Issue (Month): 3 ()
Pages: 203-207

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Handle: RePEc:eee:ecolet:v:113:y:2011:i:3:p:203-207

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Related research

Keywords: Kuznet’s inverted-U; Semiparametric model; Unbalanced panel data;

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  1. Henderson, Daniel J. & Carroll, Raymond J. & Li, Qi, 2008. "Nonparametric estimation and testing of fixed effects panel data models," Journal of Econometrics, Elsevier, vol. 144(1), pages 257-275, May.
  2. Huang, Ho-Chuan (River) & Lin, Yi-Chen & Yeh, Chih-Chuan, 2009. "Joint determinations of inequality and growth," Economics Letters, Elsevier, vol. 103(3), pages 163-166, June.
  3. Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
  4. Chen, Been-Lon, 2003. "An inverted-U relationship between inequality and long-run growth," Economics Letters, Elsevier, vol. 78(2), pages 205-212, February.
  5. Hongyi Li & Lyn Squire & Heng-fu Zou, 1998. "Explaining International and Intertemporal Variations in Income Inequality," CEMA Working Papers 73, China Economics and Management Academy, Central University of Finance and Economics.
  6. Garbis Iradian, 2005. "Inequality, Poverty, and Growth," IMF Working Papers 05/28, International Monetary Fund.
  7. Huang, Ho-Chuan River, 2004. "A flexible nonlinear inference to the Kuznets hypothesis," Economics Letters, Elsevier, vol. 84(2), pages 289-296, August.
  8. Lin, Shu-Chin & (River) Huang, Ho-Chuan & Weng, Hsiao-Wen, 2006. "A semi-parametric partially linear investigation of the Kuznets' hypothesis," Journal of Comparative Economics, Elsevier, vol. 34(3), pages 634-647, September.
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Cited by:
  1. Joël Hellier & Stéphane Lambrecht, 2012. "Inequality, growth and welfare: The main links," Working Papers 258, ECINEQ, Society for the Study of Economic Inequality.

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