Year: 2017
Author: Bahmani-Oskooee, Mohsen, Motavallizadeh-Ardakani, Amid
Applied Economics Quarterly, Vol. 63 (2017), Iss. 4 : pp. 391–427
Abstract
Kuznets’ inverted-U hypothesis asserts that at the early stages of economic growth income inequality gets worse. It only improves after a threshold growth level is reached. Like previous research, when we considered time series data from each of the 41 countries in our sample and a linear ARDL approach, we only found support for the hypothesis in four countries. However, when we shifted to nonlinear ARDL approach which separates economic booms from recessions, we were able to find support for the hypothesis in 15 countries. In many countries we found economic activity to have asymmetric effects on income inequality which is not considered by previous research.
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Journal Article Details
Publisher Name: Global Science Press
Language: English
DOI: https://doi.org/10.3790/aeq.63.4.391
Applied Economics Quarterly, Vol. 63 (2017), Iss. 4 : pp. 391–427
Published online: 2017-12
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 37
Keywords: Income distribution Kuznets’Hypothesis Nonlinear ARDL Asymmetry 41 countries