Non-linearities in cross-country growth regressions: A semiparametric approach

In this paper we employ an additive semiparametric partially linear model t o uncover the way that initial output and schooling levels affect growth ra tes. Our results based on marginal integration allow for graphical represen tation of the non-linearities that characterize the effects that these vari ables have on growth rates and suggest the presence of multiple regimes (eq uilibria). Our findings seem to be in agreement with those of Durlauf and J ohnson (1995) and Hansen (1996) who used a different data set. Copyright (C ) 1999 John Wiley & Sons, Ltd.