1998•Applied Economics LettersRequires access

The Kuznets U-curve hypothesis: some panel data evidence

László Mátyás, László Kónya, Lachlan Macquarie

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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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What this paper is about

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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OpenAlex reports 32 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available 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.

Key concepts: Kuznets curve, Econometrics, Panel data, Economics, Model selection, Random effects model, Econometric model, Statistics

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