A continuous state space approach to “Convergence by Parts”

Using a continuous state space approach, this note extends Feyrerʹs (Feyrer, J., 2003. Convergence by Parts. Manuscript, Dartmouth College. (available at http://www.dartmouth.edu/~jfeyrer/parts.pdf)) study of the proximate determinants of the shape of the long-run distribution of income per capita. Contrary to Feyrerʹs finding of the primacy of total factor productivity (TFP), the results here imply that traps in both TFP growth and capital accumulation may matter.