2018-11-09

Chirchill et. al (2018) test the Environmental Kuznets Curve (EKC) hypothesis for OECD countries using annual time series data for the period 1870–2014. Using newly developed panel data estimators, they account for cross-sectional dependence and heterogeneity in parameters.  The result supports the hypothesis for the panel as a whole with turning points in income per capita that lie between $18,955 and $89,540 (in 1990 US$), while country-specific estimation yields various results, including inverted U-shape, N-shape and inverted N-shape patterns.