Article history: Received 10 October 2014 Received in revised form 22 November 2014 Accepted 28 November 2014 Available online 1 December 2014

In endogenous growth theory models exist which are characterized by local and global indeterminacy. These concepts imply that economies differ with respect to their growth rates on the transition path (local indeterminacy) as well as their long−run growth rates (global indeterminacy). While the empirical density function of the levels of aggregate GDP has been the subject of a great many studie...

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Article history: Received 15 January 2013 Received in revised form 12 October 2013 Accepted 8 November 2013 Available online 22 November 2013