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Growth rates are calculated from stocks. 3. Conflicting Views 3.1. The Analysis of the Mean: β-Convergence The analysis of convergence can be framed into the neoclassical optimal growth model where, once the factor accumulation is taken into account, countries converge to their long-run ...
If we assume instead that they converge with the richer part of the rich cluster, for example, following what it is called a “growth miracle”, a larger number of observations with a per capita income higher than the mode of this cluster compose the rich cluster after the catching-up proc...