The University of Southampton
University of Southampton Institutional Repository

The environmental Kuznets curve: functional form, time-varying heterogeneity and outliers in a panel setting

The environmental Kuznets curve: functional form, time-varying heterogeneity and outliers in a panel setting
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.
1180-4009
Martinez-Zarzoso, Inmaculada
b5954f3b-6831-4025-8c36-676543da1a2d
Maruotti, Antonello
7096256c-fa1b-4cc1-9ca4-1a60cc3ee12e
Martinez-Zarzoso, Inmaculada
b5954f3b-6831-4025-8c36-676543da1a2d
Maruotti, Antonello
7096256c-fa1b-4cc1-9ca4-1a60cc3ee12e

Martinez-Zarzoso, Inmaculada and Maruotti, Antonello (2013) The environmental Kuznets curve: functional form, time-varying heterogeneity and outliers in a panel setting. Environmetrics, 24 (461-475). (doi:10.1002/env.2232).

Record type: Article

Abstract

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.

This record has no associated files available for download.

More information

Published date: October 2013
Organisations: Statistics, Statistical Sciences Research Institute

Identifiers

Local EPrints ID: 358981
URI: http://eprints.soton.ac.uk/id/eprint/358981
ISSN: 1180-4009
PURE UUID: 640fe14c-6ac8-41ad-afdb-a136f6c2fd52

Catalogue record

Date deposited: 17 Oct 2013 13:28
Last modified: 14 Mar 2024 15:12

Export record

Altmetrics

Contributors

Author: Inmaculada Martinez-Zarzoso
Author: Antonello Maruotti

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×