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The Kuznets U-curve hypothesis: some panel data evidence

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  • Laszlo Matyas
  • Laszlo Konya
  • Lachlan MaCquarie

Abstract

In this paper Kuznet's U-curve hypothesis is tested on two unbalanced panel data sets of 47 and 62 countries, for the period 1970-93, using two-way fixed and random effects models. Several competing model specifications are estimated and the one best fitting the data is selected by appropriate model selection procedures. It is shown that there is no hard empirical evidence to support the usual econometric model formulations and the U-curve hypothesis.

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Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 5 (1998)
Issue (Month): 11 ()
Pages: 693-697

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Handle: RePEc:taf:apeclt:v:5:y:1998:i:11:p:693-697
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  • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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Cited by:

  1. Perdamen Sagala & Takahiro Akita & Arief Anshory Yusuf, 2013. "Urbanization and Expenditure Inequality in Indonesia: Testing the Kuznets Hypothesis with Provincial Panel Data," Working Papers in Economics and Development Studies (WoPEDS) 201318, Department of Economics, Padjadjaran University, revised Oct 2013.
  2. Shahdad Naghshpour, 2005. "The cyclical nature of family income distribution in the united states: An empirical note," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 29(1), pages 138-143, March.
  3. Shahbaz, Muhammad & Kumar Tiwari, Aviral & Nasir, Muhammad, 2013. "The effects of financial development, economic growth, coal consumption and trade openness on CO2 emissions in South Africa," Energy Policy, Elsevier, vol. 61(C), pages 1452-1459.
  4. Nasir, Muhammad & Ur Rehman, Faiz, 2011. "Environmental Kuznets Curve for carbon emissions in Pakistan: An empirical investigation," Energy Policy, Elsevier, vol. 39(3), pages 1857-1864, March.
  5. Muhammad, Shahbaz & Tiwari, Aviral & Muhammad, Nasir, 2011. "The effects of financial development, economic growth, coal consumption and trade openness on environment performance in South Africa," MPRA Paper 32723, University Library of Munich, Germany, revised 10 Aug 2011.
  6. Luis Angeles, 2010. "An alternative test of Kuznets’ hypothesis," Journal of Economic Inequality, Springer, vol. 8(4), pages 463-473, December.
  7. Mehmet Mercan & Ozlem Azer, 2013. "The Relationship between Economic Growth and Income Distribution in Turkey and the Turkish Republics of Central Asia and Caucasia: Dynamic Panel Data Analysis with Structural Breaks," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 3(2), pages 165-182, December.
  8. Atici, Cemal, 2012. "Carbon emissions, trade liberalization, and the Japan–ASEAN interaction: A group-wise examination," Journal of the Japanese and International Economies, Elsevier, vol. 26(1), pages 167-178.
  9. Luis Angeles, 2007. "A proper farewell to Kuznets' hypothesi," Working Papers 2007_15, Business School - Economics, University of Glasgow.
  10. Shahbaz, Muhammad & Ur Rehman, Ijaz & Ahmad Mahdzan, Nurul Shahnaz, 2013. "Linkages between Income Inequality, International Remittances and Economic Growth in Pakistan," MPRA Paper 45577, University Library of Munich, Germany, revised 20 Mar 2013.
  11. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
  12. Halkos, George E. & Tsionas, Efthymios G., 2001. "Environmental Kuznets curves: Bayesian evidence from switching regime models," Energy Economics, Elsevier, vol. 23(2), pages 191-210, March.

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