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N-shaped Environmental Kuznets Curve: A Note on Validation and Falsification

Sinha, Avik and Shahbaz, Muhammad and Balsalobre, Daniel (2018): N-shaped Environmental Kuznets Curve: A Note on Validation and Falsification.

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The empirical testing of Environmental Kuznets Curve (EKC) hypothesis plays a significant role in designing a macroeconomic model for sustainable economic development. In doing so, we have chosen the N-shaped EKC, i.e., cubic specification of EKC, and have shown the validation criteria by checking the first order differentiation of the empirical model(s). Then, we have selected several studies in which these particular validation criteria have not been followed and have shown how the models derived in those studies are falsified. This research note may have a significant implication for studies to be carried out based on the EKC hypothesis by ensuring a certain level of model validation, which is sometimes ignored by researchers.

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