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The environmental Kuznets curve: functional form, time‐varying heterogeneity and outliers in a panel setting
This paper contributes to extend the Environmental Kuznets Curve (EKC) literature by introducing a new estimation technique able to deal with the issue of slope heterogeneity, functional form issues, the role of unobserved time‐dependent factors and the presence of outliers in the data. A robust hidden Markov model is used to estimate an Environmental Kuznets Curve for a sample of 28 Organisation of Economic Co‐operation and Development countries over the period 1968 to 2006. Dependent mixture models provide more flexibility than single‐distributions do by assuming the existence of a latent process that follows a finite state first‐order Markov chain and affects the distribution of the response variable. The main results indicate that the relationship between emissions and income is country‐specific and changes over time. By using robust estimation, five homogeneous groups of countries are identified and country‐membership transition dynamics are shown. Copyright © 2013 John Wiley & Sons, Ltd.
The environmental Kuznets curve: functional form, time‐varying heterogeneity and outliers in a panel setting
This paper contributes to extend the Environmental Kuznets Curve (EKC) literature by introducing a new estimation technique able to deal with the issue of slope heterogeneity, functional form issues, the role of unobserved time‐dependent factors and the presence of outliers in the data. A robust hidden Markov model is used to estimate an Environmental Kuznets Curve for a sample of 28 Organisation of Economic Co‐operation and Development countries over the period 1968 to 2006. Dependent mixture models provide more flexibility than single‐distributions do by assuming the existence of a latent process that follows a finite state first‐order Markov chain and affects the distribution of the response variable. The main results indicate that the relationship between emissions and income is country‐specific and changes over time. By using robust estimation, five homogeneous groups of countries are identified and country‐membership transition dynamics are shown. Copyright © 2013 John Wiley & Sons, Ltd.
The environmental Kuznets curve: functional form, time‐varying heterogeneity and outliers in a panel setting
Martinez‐Zarzoso, Inmaculada (author) / Maruotti, Antonello (author)
Environmetrics ; 24 ; 461-475
2013-11-01
15 pages
Article (Journal)
Electronic Resource
English
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