Some evidence on the continuity of the growth process among the G7 countries

The stability of the growth process, whether growth rates are rising, falling, or constant, is one of the central questions of economic growth theory. We use recently developed techniques for identifying structural change in economic time series, and find evidence of multiple break in per capita real GDP of the G7 countries over the past 120 years. Once determined, these breaks are used to delineate time periods. Although there is some evidence of individuals periods of slowdowns, the overall tendency appears to be one of increasing steady state growth over the long run. (JEL 05, 01, C22).