Early models of Schumpeterian growth incorporate scale effects predicting that large economies grow faster than small economies, and that population growth causes accelerating per capita income growth. An absence of clear empirical evidence for these scale effects has led some researchers to...

We reassess Mankiw, Romer and Weil's [mrw] version of the Solow model using, as did mrw, cross-sectional data to estimate the steady-state equation governing income per capita levels. The model fails in two critical areas. First, plausible factor shares obtained by mrw are not robust to the...