Impact of Economic Growth on Income Distribution: Are the Effects Asymmetric?

Mohsen Bahmani-Oskooee and Amid Motavallizadeh-Ardakani

Applied Economics Quarterly (formerly: Konjunkturpolitik), 2017, vol. 63, issue 4, 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.

Keywords: Income distribution; Kuznets’Hypothesis; Nonlinear ARDL; Asymmetry; 41 countries (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.3790/aeq.63.4.391 (application/pdf)
Access to full text is restricted to subscribers (2008 onwards); Pay-per-view access from https://elibrary.duncker-humblot.com/journals/aeq (2008 onwards) and http://www.genios.de (2008 onwards)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dah:aeqaeq:v63_y2017_i4_q4_p391-427

Ordering information: This journal article can be ordered from
https://www.duncker-humblot.de/zeitschriften/aeq

Access Statistics for this article

Applied Economics Quarterly (formerly: Konjunkturpolitik) is currently edited by Cinzia Alcidi, Christian Dreger and Daniel Gros

More articles in Applied Economics Quarterly (formerly: Konjunkturpolitik) from Duncker & Humblot GmbH, Berlin
Bibliographic data for series maintained by E-Publishing-Team ().