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Another empirical look at the Kuznets curve

Rabindra Bhandari (), Gyan Pradhan () and Mukti Upadhyay ()
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Rabindra Bhandari: Westminster College, Fulton, MO 65251, USA
Gyan Pradhan: Eastern Kentucky University, Richmond, KY 40475, USA

International Journal of Business and Economic Sciences Applied Research (IJBESAR), 2010, vol. 3, issue 2, 7-19

Abstract: This paper examines the functional relationships between income inequality, economic factors, institutions, and Kuznets’ inverted-U hypothesis. A model that ncorporates interactive as well as direct effects of several factors to capture their combined effect on inequality is developed. The model is estimated using two popular measures of inequality—the Gini coefficient, and the ratio of income shares in income distribution—using a panel data set for 57 countries from 1987 to 2006. The results provide support for Kuznets' hypothesis; however, the relationship between growth and inequality is conditioned by a host of economic and institutional factors.

Keywords: Kuznets curve; inequality; growth; Gini coefficient; income shares (search for similar items in EconPapers)
JEL-codes: O1 O40 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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