Distribution Dynamics and Nonlinear Growth

This paper extends the distribution dynamics approach to the study of the shape of the growth process of a cross-section of countries. We rst identify some empirical implications of a nonlinear Solovian growth model with multiple equilibria. These implications are then tested by a novel denition of the state space, which jointly consid-ers income and growth rate. The main ndings 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