Basics
Who developed the EKC? (full name)
Simon Kuznets.
During which historical period did income inequality decrease significantly according to Kuznets' data?
WW1.
What two variables make up the Environmental Kuznets curve?
Environmental degradation and economic growth.
What describes the relationship between economic growth and inequality as an inverted U-shaped curve?
The Kuznets Curve.
What criticism is often raised about the Kuznets curve?
Lack of sufficient data.
What is the shape of the Kuznets curve?
An inverted "U" shape.
Historical data from what time period was used to support Kuznets's hypothesis?
1st half of 20th century (post WW1).
Name one criticism of the Environmental Kuznets Curve.
Mixed empirical evidence, pollution outsourced to other countries, high GDP countries having high CO2 emissions.
What are the two variations of the Kuznets Curve?
Singapore, South Korea, Taiwan, and Hong Kong are collectively known by which name?
The Four Asian Tigers.
Name one variable that can be listed on the x-axis on a traditional Kuznets curve.
Economic development, industrialization, time.
Historical data from what region (list one) support the Kuznets hypothesis?
Latin America, US, UK, and Germany.
Income level, technology, regulations.
Describe the initial phase of the Kuznets Curve. (include economic growth and inequality)
Economic growth leads to increased inequality.
Who was a prominent critic of the Kuznets Curve?
Piketty.
Name one variable that can be listed on the y-axis of the traditional Kuznets curve.
Gini coefficient, inequality
The Kuznets Curve did not adhere to trends beginning in which decade?
The 1970's.
What sector shift does EKC involve?
Industrial to service.
Describe the later phase of the Kuznets Curve. (include economic growth and inequality)
Inequality decreases as development progresses.
Which decade's economic data challenges the Kuznets Curve's predictions about inequality?
1970's.
What calculates the proportion of income for highest-earning households to the income for lowest-earning households?
The Kuznets ratio.
What is Piketty's recommendation for addressing global inequality?
Progressive global tax on private capital.
Name one reason why pollution decreases after industrialization.
Improved technology, regulations.
Provide a specific policy that aims to address the inequality phase of the Kuznets Curve.
Progressive taxation.
What method did Kuznets' critics suggest to lessen inequality?
Redistribution.