Scholarly Comments on Academic Economics

Kuznets Curveball: Missing the Regional Strike Zone

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This paper addresses the specification of the econometric models used in the paper “Level of Development, Rate of Economic Growth, and Income Inequality” by Jih Y. Chang and Rati Ram (2000). We find that when accounting for regional heterogeneity, the Kuznets hypothesis no longer holds, and low growth countries no longer have a higher degree of income dispersion over all levels of income than high growth countries.