  Most models that try to explain economic growth indicate exponential growth
paths. In recent years, however, a lively discussion has emerged considering
the validity of this notion. In the empirical literature dealing with drivers
of economic growth, the majority of articles is based upon an implicit
assumption of exponential growth. Few scholarly articles have addressed this
issue so far. In order to shed light on this issue, we estimate autoregressive
integrated moving average time series models based on Gross Domestic Product
Per Capita data for 18 mature economies from 1960 to 2013. We compare the
adequacy of linear and exponential growth models and conduct several robustness
checks. Our fndings cast doubts on the widespread belief of exponential growth
and suggest a deeper discussion on alternative economic grow theories.
