We show that leapfrogging and growth reversals entail sizeable welfare gains and losses, respectively, in an AK economy … consumption level typically imply large welfare gains. In contrast, growth reversals occur for large delays and lead to …

growth, and it leads to leapfrogging in long-run levels. When large enough, the history effect originates growth reversals … disasters and growth accelerations. We also provide examples showing that leapfrogging and growth reversals may coexist, so that … currently poor but fastgrowing countries experiencing sharp growth reversals may end up, in the long-run, significantly richer …

growth, and it leads to leapfrogging in long-run levels. When large enough, the history effect originates growth reversals … disasters and growth accelerations. We also provide examples showing that leapfrogging and growth reversals may coexist, so that … currently poor but fast-growing countries experiencing sharp growth reversals may end up, in the long-run, significantly richer …

policies and financial development, we find that democracy is the most robust predictor of a country's propensity for growth … reversals. We construct a model in which non-democracies have high barriers of entry for new firms. This leads to less sectoral …