Distribution Dynamics and Nonlinear Growth
- Cite this article as:
- Fiaschi, D. & Lavezzi, A.M. Journal of Economic Growth (2003) 8: 379. doi:10.1023/A:1026204900651
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This paper extends the distribution dynamics approach to the study of the shape of the growth process of a cross-section of countries. We first identify some empirical implications of a nonlinear Solovian growth model with multiple equilibria. These implications are then tested by a novel definition of the state space, which jointly considers income and growth rate. The main findings are that nonlinearity is a salient feature of the overall picture, and that the cross-section dynamics is compatible with the existence of multiple equilibria. We also discuss how the hypothesis of conditional convergence may be challenged in the light of our results.