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Kuznets Curve for the US: A Reconsideration Using Cosummability

Author

Listed:
  • Adnen Ben Nasr

    (Institut Supérieur de Gestion de Tunis)

  • Mehmet Balcilar

    (Eastern Mediterranean University
    Montpellier Business School
    University of Pretoria)

  • Seyi Saint Akadiri

    (Eastern Mediterranean University)

  • Rangan Gupta

    (University of Pretoria)

Abstract

The relationship between income inequality and long-run economic growth has gained a growing attention in economic research for over decades. This study employed advanced time series techniques to examine the existence of an inverted U-shaped long-run relationship between income inequality and economic growth, using long-span time series data for the United States between the periods 1917–2012. The concepts of summability, balancedness and co-summability was advanced to analyze nonlinear long-run relations among stochastic processes. The empirical results find no evidence in support of nonlinear long-run (inverted U-shaped) relationship for the US, but findings from a vocal set of economists lends strong support and is the basis for the conclusions drawn by this study.

Suggested Citation

  • Adnen Ben Nasr & Mehmet Balcilar & Seyi Saint Akadiri & Rangan Gupta, 2019. "Kuznets Curve for the US: A Reconsideration Using Cosummability," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(2), pages 827-843, April.
    • Handle: RePEc:spr:soinre:v:142:y:2019:i:2:d:10.1007_s11205-018-1940-1
    DOI: 10.1007/s11205-018-1940-1
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    2. Sudeshna Ghosh, 2022. "Effects of tourism on carbon dioxide emissions, a panel causality analysis with new data sets," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3884-3906, March.
    3. Seyi Saint Akadiri & Ada Chigozie Akadiri, 2018. "Growth and Inequality in Africa: Reconsideration," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 76-86, September.
    4. Renee van Eyden & Rangan Gupta & Xin Sheng & Mark E. Wohar, 2019. "Impact of Oil Price Volatility on State-Level Consumption of the United States: The Role of Oil Dependence," Working Papers 201969, University of Pretoria, Department of Economics.
    5. Shinhye Chang & Matthew W. Clance & Giray Gozgor & Rangan Gupta, 2019. "A Reconsideration of Kuznets Curve across Countries: Evidence from the Co-summability Approach," Working Papers 201970, University of Pretoria, Department of Economics.
    6. Oğuzhan Çepni & Rangan Gupta & Zhihui Lv, 2020. "Threshold effects of inequality on economic growth in the US states: the role of human capital to physical capital ratio," Applied Economics Letters, Taylor & Francis Journals, vol. 27(19), pages 1546-1551, November.

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    More about this item

    Keywords

    Income inequality; Economic growth; Summability; Balancedness; Co-summability;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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