A Continuous State Space Approach to “Convergence by Parts”
by Paul A. Johnson (Oct. 2003; Revised March 2004)
Using a continuous state space approach, this note extends Feyrer’s [2003] study of the proximate determinants of the shape of the long-run distribution of income per capita. Contrary to Feyrer’s finding of the primacy of TFP, the results here imply that traps in both TFP growth and capital accumulation may matter.
Published: Economics Letters, March 2005, 86(3):317-21.