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The Theory Of The Inverted U: An Empirical Test Of The Hypothesis Kuznets For The Relationship Between Economic Growth And Income Inequality In Brazil (1976-2007)

Author

Listed:
  • Tácito Augusto Farias

    (Universidade Federal de Sergipe (UFS))

  • Wesley Oliveira Santos

    (Universidade Federal de Sergipe (UFS))

  • Anderson Renê Santos Silva

    (Universidade Federal de Sergipe (UFS))

  • Danilo Lima Matos

    (Universidade Federal de Sergipe (UFS))

  • Fábio Rodrigues de Moura

    (Universidade Federal de Pernambuco (Pimes-UFPE))

Abstract

This article examines the relationship between economic growth and inco-me inequality in Brazil, in order to verify the applicability of Simon Kuznets’ (1955) “inverted U†hypothesis, which establishes that this relationship follo-ws a pattern where inequality grows in the early stages of development to an inflection point, after which it will fall over the occurrence of economic gro-wth. By applying a first order auto-regressive (AR1) econometric model in ti-me-series, it was possible to empirically prove the theory proposed by Kuz-nets, i.e. the relationship between income inequality and economic growth follows the format of “inverted U†to Brazil in the period 1976-2007.

Suggested Citation

  • Tácito Augusto Farias & Wesley Oliveira Santos & Anderson Renê Santos Silva & Danilo Lima Matos & Fábio Rodrigues de Moura, 2010. "The Theory Of The Inverted U: An Empirical Test Of The Hypothesis Kuznets For The Relationship Between Economic Growth And Income Inequality In Brazil (1976-2007)," Revista de Economia Mackenzie (REM), Mackenzie Presbyterian University, Social and Applied Sciences Center, vol. 8(1), pages 26-51, january-a.
  • Handle: RePEc:aft:journl:v:8:1:2010:jan:apr:p:26-51
    DOI: -
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