Inequality and development: Evidence from semiparametric estimation with panel data

Abstract

Evidences from nonparametric and semiparametric unbalanced panel data models with fixed effects show that Kuznet’s inverted-U relationship is confirmed when economic development reaches a threshold. The model tests justify semiparametric specification. The integrated net contribution of control variables to inequality reduction is significant.Kuznet’s inverted-U, Semiparametric model, Unbalanced panel data