inverted-U Hypothesis Research Articles

Decentralization and rural–urban income inequality: implications for inverted-U hypothesis of Pakistan

Decentralization and rural–urban income inequality: implications for inverted-U hypothesis of Pakistan

Investments in Innovations and Market Structure: A Semi-parametric Approach

The economic literature suggests that there is an inverted-U type of relationship between innovation and product market competition. Existing empirical studies assume a quadratic functional form while estimating the relationship between the two variables. Using data on the Indian manufacturing industry, this article contributes by using a semi-parametric approach to test the ‘Inverted-U’ hypothesis without assuming a priori functional form. The estimation results suggest that the functional form of the relationship is contingent upon the choice of product market competition indicator in the model. When product market competition is defined as overall price competition, the empirical evidence confirms the inverted-U hypothesis. This implies that both escape competition and the Schumpeterian effect are observed as price competition increases. However, when product market competition is defined as domestic competition, only the escape competition effect is observed. JEL Codes: L10, L60, O30, O33, F10

Null effect of perceived drum pattern complexity on the experience of groove.

There is a broad consensus in groove research that the experience of groove, understood as a pleasurable urge to move in response to music, is to some extent related to the complexity of the rhythm. Specifically, music with medium rhythmic complexity has been found to motivate greater urge to move compared to low or high complexity music (inverted-U hypothesis). Studies that confirmed the inverted-U hypothesis usually based their measure of complexity on the rhythmic phenomenon of syncopation, where rhythms with more and/or stronger syncopation are considered to be more complex than less syncopated rhythms. However, syncopation is not the same as complexity and represents only one rhythmic device that makes music complex. This study attempts the verification of the inverted-U hypothesis independently from syncopation. It uses a new stimulus set of forty idiomatic popular music drum patterns whose perceptual complexity was measured experimentally in a previous study. The current study reports the results of a listening experiment with n = 179 participants, in which the inverted-U hypothesis was not confirmed. Complexity did not have any significant effect on listeners' urge to move (p = 834). Results are discussed in the context of the psychological model of musical groove, which offers a nuance to this null result: simple drum patterns motivate listeners to dance because they convey metric clarity; complex patterns invite dancing because they are interesting. Yet, overall, the urge to move does not seem to depend on complexity, at least in the case of idiomatic drum patterns that are typically encountered in the Western popular music repertoire.

Changes in Functional Connectivity Between Default Mode Network and Attention Network in Response to Changes in Aerobic Exercise Intensity.

Aerobic exercise may be associated with changes in brain activity within the default mode network (DMN) and dorsal attention network (DAN). We hypothesized that changes in functional connectivity (FC) within the DMN and DAN might be most effectively activated by moderate-intensity exercise. Resting-state functional magnetic resonance imaging scans and visuospatial attention tests after resting were performed before and after each of moderate- and high-intensity aerobic exercises (10 min each) in 15 healthy male volunteers. The reaction time during the attention test increased significantly, and the rate of correct responses decreased from moderate-intensity exercise condition to high-intensity exercise condition. FC within the DMN under high-intensity exercise condition was higher than that under pre-exercise and moderate-intensity exercise conditions. FC within the DAN under moderate-intensity exercise condition was the highest, whereas FC between the DMN and DAN under moderate-intensity exercise condition was the lowest. Changes in cognitive domain functions were associated with changes in FC between the DMN and DAN. Our results support the inverted-U hypothesis of maximum arousal efficacy during moderate exercise. Both cognitive domains, namely, the attention system and brain activity domains, may be better under moderate-intensity exercise than under high-intensity exercise.

Relationship Between Financial Development And Income Inequality For Turkey And Selected Countries With Similar Economy

Purpose: The study's primary purpose is to investigate the validity of the Financial Kuznets Curve hypothesis for 15 selected upper and middle-income countries in terms of middle and upper-income group countries. In this context: Income inequality using annual data for the period 2002-2018 of 15 countries, including Turkey, Brazil, Belarus, Armenia, Ecuador, Colombia, Costa Rica, Dominican Republic, Georgia, Mexico, Kazakhstan, Paraguay, Peru, Russian Federation and Thailand. Methodology: The relationship between income inequality and financial development was examined by panel data analysis. At the same time, as in similar studies in the literature, growth, inflation and foreign trade variables, which are among the main variables related to the subject, were also included in the research. Findings: As a result of the findings, results were obtained that support the inverted-U hypothesis between income inequality and financial development.

IS KUZNETS’ INVERTED-U HYPOTHESIS VALID FOR TURKEY?: ARDL BOUNDS TESTING APPROACH

Kuznets (1955) stated that in the early stages of a society's economic development, income inequality would increase with economic growth, and in the later stages of economic growth, income inequality would decrease. The aim of this study is to analyze whether Kuznets (1955) hypothesis was valid for the Turkish economy with the help of ARDL boundary test approach using data from 1987-2019 period. As a result of the analysis, it was found that there is a negative relationship between economic growth and income inequality. These results indicate that Kuznets' inverted-U hypothesis is not valid in Turkey, but rather that the relationship between economic growth and income inequality is similar to the U-shape.

The Effect of Red and Blue on Gross and Fine Motor Tasks: Confirming the Inverted-U Hypothesis.

Previous studies have shown that the color red can affect basic motor functioning. However, these studies utilized simple gross motor tasks rather than those assessing complex fine motor skills. Moreover, these empirical studies were theoretically based on the threat–behavior link in human and non-human animals, and neglected the relationship between arousal and motor performance. According to the Yerkes–Dodson law and the inverted-U hypothesis in sport psychology, for simple motor tasks, high arousal (associated with the color red) is more advantageous than low arousal (associated with the color blue); for complex motor tasks, low arousal (blue color) is more advantageous than high arousal (red color). The current research examined the effect of color on different kinds of motor skills (fine motor and gross motor) based on the inverted U-hypothesis. In Experiment 1, we examined the effect of red and blue on dart-throwing performance, whereas in Experiment 2, we examined the effect of red and blue on grip strength performance. The results showed that performance of fine motor skill (dart-throwing) in the blue condition was better than in the red condition, and performance of gross motor skill (handgrip) in the red context was better than in the blue context. These results indicate that the type of motor skill assessed moderates the influence of red and blue on motor performance.

Is urbanisation sans infrastructure a myth? Evidence from India

This study examines the determinants of urbanisation in Indian states with special emphasis on infrastructure and infrastructure investment, using data on 17 Indian states for 1991 to 2017. The fixed effects regression model shows that physical infrastructure is an important determinant in high income states, while social infrastructure is important in high-income and low-income states (where the magnitude is negative). Electricity consumption and teledensity positively affect urbanisation in high- and low-income states, while the infant mortality rate in high-income states and the enrolment ratio in low-income states affect urbanisation negatively. The supply-led inverted-U hypothesis of infrastructure- investment-led urbanisation is only disproven for middle-income states while applying strongly in all other cases, particularly low-income states. Hence, the impact of infrastructure on urbanisation differs across states not only by type of infrastructure but also by the state?s income category.

Trend of income inequality in Asia and effects of education

This study considers how education and globalization affect income inequality in Asia, with the unbalanced panel data. The evidence supports the validity of Kuznets inverted-U hypothesis for the connection between the income level and income inequality. However, when more variables are integrated into the model, the consistency of inverse U-shaped curve becomes weaker. The empirical results suggest that educational variables are highly influential in affecting income distribution. Our analysis indicates that a higher level of education achieved by the population aged 15 and over has improved income distribution in Asia, while educational inequality, measured by the educational Gini, has a negative effect on income distribution. Higher levels of globalization are correlated with higher levels of income inequality, while freedom, either political or economic, has marginal effects on the level of inequity in income distribution.
 Key words: Education inequality, globalisation, income inequality

Income inequality and agglomeration economies: a case of a developing economy

The concentration of population generates spillover effects and one would expect the upsurge of business and economic activities in that particular area which also affects income distribution in the society. This paper is intended to elucidate income inequality in the context of agglomeration economies in a developing economy like Pakistan during 1980-2014. The study period is hallmarked by the major shocks across the world economies including Pakistan. Therefore, the study incorporates structural break both during the pretesting of time series properties and in cointegration tests. The bounds testing for the long-run cointegration reveals that the under investigating variables are cointegrated. We further find that the Kuznets inverted-U hypothesis does not hold in Pakistan. Moreover, the agglomeration economies negatively and linearly affect income inequality. This study suggests that the concentration of business activities in the less agglomerated areas is helpful in reducing income inequality.

Impact of Economic Growth on Income Distribution: Are the Effects Asymmetric?

Kuznets’ inverted-U hypothesis asserts that at the early stages of economic growth income inequality gets worse. It only improves after a threshold growth level is reached. Like previous research, when we considered time series data from each of the 41 countries in our sample and a linear ARDL approach, we only found support for the hypothesis in four countries. However, when we shifted to nonlinear ARDL approach which separates economic booms from recessions, we were able to find support for the hypothesis in 15 countries. In many countries we found economic activity to have asymmetric effects on income inequality which is not considered by previous research.

Examining Impulse-Variability Theory and the Speed-Accuracy Trade-Off in Children's Overarm Throwing Performance.

This study examined variability in throwing speed and spatial error to test the prediction of an inverted-U function (i.e., impulse-variability [IV] theory) and the speed-accuracy trade-off. Forty-five 9- to 11-year-old children were instructed to throw at a specified percentage of maximum speed (45%, 65%, 85%, and 100%) and hit the wall target. Results indicated no statistically significant differences in variable error across the target conditions (p = .72), failing to support the inverted-U hypothesis. Spatial accuracy results indicated no statistically significant differences with mean radial error (p = .18), centroid radial error (p = .13), and bivariate variable error (p = .08) also failing to support the speed-accuracy trade-off in overarm throwing. As neither throwing performance variability nor accuracy changed across percentages of maximum speed in this sample of children as well as in a previous adult sample, current policy and practices of practitioners may need to be reevaluated.

Does Anxiety Affect Adolescent Academic Performance? The Inverted-U Hypothesis Revisited

The inverted-U relationship between anxiety and performance in the context of endogeneity has yet to be investigated. Junior high school students from Taiwan were used as the sample for investigating the effect of anxiety levels on the comprehensive analysis aptitude of students. The ordinary least square (OLS) analysis indeed confirmed the inverted-U relationship. In addition, both fixed-effect analysis and two-stage least square (2SLS) analysis using variation in acne severity to instrument for anxiety also concluded that anxiety increased performance at lower anxiety levels. However, this relationship was positive and insignificant at higher anxiety levels. Overall, our results supported the left (increasing) part of the inverted-U relationship between anxiety and performance, but found no evidence for the right (decreasing) part of the inverted-U relationship.

Threat Appeals: The Fear–Persuasion Relationship is Linear and Curvilinear

ABSTRACTDrive theory may be seen as the first scientific theory of health and risk communication. However, its prediction of a curvilinear association between fear and persuasion is generally held to be incorrect. A close rereading of Hovland et al. reveals that within- and between-persons processes were conflated. Using a message that advocated obtaining a screening for colonoscopy, this study (N = 259) tested both forms of the inverted-U hypothesis. In the between-persons data, analyses revealed a linear effect that was consistent with earlier investigations. However, the data showed an inverted-U relationship in within-persons data. Hence, the relationship between fear and persuasion is linear or curvilinear depending on the level of analysis.

Revisiting the Inverted-U Hypothesis of Working Memory Activation in Schizophrenia

Revisiting the Inverted-U Hypothesis of Working Memory Activation in Schizophrenia

Mild Dissonance Preferred Over Consonance in Single Chord Perception.

Previous research on harmony perception has mainly been concerned with horizontal aspects of harmony, turning less attention to how listeners perceive psychoacoustic qualities and emotions in single isolated chords. A recent study found mild dissonances to be more preferred than consonances in single chord perception, although the authors did not systematically vary register and consonance in their study; these omissions were explored here. An online empirical experiment was conducted where participants (N = 410) evaluated chords on the dimensions of Valence, Tension, Energy, Consonance, and Preference; 15 different chords were played with piano timbre across two octaves. The results suggest significant differences on all dimensions across chord types, and a strong correlation between perceived dissonance and tension. The register and inversions contributed to the evaluations significantly, nonmusicians distinguishing between triadic inversions similarly to musicians. The mildly dissonant minor ninth, major ninth, and minor seventh chords were rated highest for preference, regardless of musical sophistication. The role of theoretical explanations such as aggregate dyadic consonance, the inverted-U hypothesis, and psychoacoustic roughness, harmonicity, and sharpness will be discussed to account for the preference of mild dissonance over consonance in single chord perception.

Premature Deindustrialization in Developing Countries and Implications for Economic Growth

The examination in this paper is with regard to developing countries, and with regard to deindustrialization in the output share of manufacturing (both at current and constant prices). The question is whether the falling output share of manufacturing across time in developing countries –whether it occurs due to the determinant trade openness? In that, is there a steady decline in manufacturing output share both at current and constant prices, and what are the potential reasons behind it. Certain aspects of deindustrialization in developing countries will be explored in this paper. The first examination is that – by using a select developing country group consisting of 98 countries, the relationship between manufacturing output shares at current and constant prices and the GDP per capita income will be examined to prove the inverted-U hypothesis. It will be followed with an analysis of the different determinants of deindustrialization and how those determinants behave with respect to developing countries.

Patent Prospect Theory and Competitive Innovation

In his seminal “prospect theory” of patents, Edmund Kitch contends that patents should be relatively broad in order to promote post-grant follow-on innovation and development. The argument rests critically on the assumption that post-grant competition will diminish such efforts. This is just a special case of the more general claim that a market will be more innovative when it is less competitive. When an innovator invents a new technology, it enters (or creates) a market for the relevant technology class, and the breadth of its patent determines how competitive this market can become. Prospect theory asserts that this post-grant market should involve little or no competition, and infers from this that patents should be broad. However, economists have long debated the relationship between competition and innovation. A leading view among contemporary economists – the inverted-U hypothesis – contends that aggregate innovation is maximized somewhere in between monopoly and perfect competition; that is, the market should be relatively competitive, but not too competitive. This hypothesis is strongly supported by recent theoretical and empirical economic research, much of which suggests that the socially optimal market structure is in fact closer to perfect competition than monopoly. Although this theory has not previously been related to the question of optimal patent breadth, it provides perhaps the best economic machinery for addressing this problem. In particular, it suggests that, in contrast to the teachings of prospect theory, patent breadth should be fairly modest in order to elicit a relatively significant degree of post-grant competition.

What Have We Learned from Cross-National Research on the Causes of Income Inequality?

Reviews of research on the causes of income inequality often limit themselves to the United States or highly industrialized societies. The present review seeks greater generalizability across societies at all levels of development. It covers cross-national studies published since the 1960s, which draw upon a variety of theories and test them empirically, with the result that that we can now identify a broad range of important causal variables that explain variations in income inequality both across societies and over time. These variables include: economic dualism and the Kuznets inverted-U hypothesis, demographic variables, human capital theory and the influence of a population’s level of education, educational inequality, and the race between education (skill) and technology, democracy, communist rule, factors of production, labor institutions, neoliberal globalization, and the effect of the state on inequality. The review suggests which of these variables have more robust effects, and which causal effects are more contested.

How Can Globalization Affect Income Distribution? Evidence from Developing Countries

ABSTRACTThe standard Hecksher-Ohlin-Samuelson framework claimed that foreign trade benefits developing countries, but many empirical studies suggest otherwise. After analyzing data on income deciles from the World Income Distribution Database for 66 developing countries, we found that trade openness benefits underprivileged people in affluent countries but not in developing countries. Also, external financial flows and democracy in conjunction do not exert significant effects, suggesting that these variables might affect income distribution through different channels. Finally, we reinforce the Kuznets inverted-U hypothesis; namely, the presence of an economic development threshold beyond which low-income deciles would increase.