Solow growth model

E391913

The Solow growth model is a foundational economic framework that explains long-run economic growth through capital accumulation, labor or population growth, and exogenous technological progress.

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Predicate Object
instanceOf economic growth model
macroeconomic model
neoclassical growth model
assumes closed economy in basic version
competitive markets
constant returns to scale production function
diminishing returns to capital
exogenous population growth
exogenous savings rate
exogenous technological progress
classification exogenous growth model
coreVariable capital stock
labor
output
technology level
describes long-run economic growth
distinguishes growth from factor accumulation
growth from technological progress
explains role of capital accumulation in growth
role of exogenous technological progress in growth
role of labor growth in output growth
feature capital deepening
capital widening
golden rule level of capital
field economic growth theory
macroeconomics
hasExtension Solow model with government
Solow growth model self-linksurface differs
surface form: Solow model with human capital

open-economy Solow model
implies diminishing marginal product of capital
long-run growth in output per worker driven by technology
influenced endogenous growth models
modern growth theory
policy analysis on savings and investment
introducedBy Robert Solow
surface form: Robert M. Solow
introducedIn 1956
namedAfter Robert Solow
oftenUses Cobb–Douglas production function
predicts convergence in income per capita under certain conditions
existence of steady-state capital per worker
existence of steady-state output per worker
transitional dynamics toward steady state
publication Solow growth model self-linksurface differs
surface form: A Contribution to the Theory of Economic Growth
publicationYear 1956
usedFor analyzing effects of savings rate changes
analyzing population growth effects on income per capita
cross-country income comparisons
growth accounting
uses aggregate production function

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Referenced by (12)

Full triples — surface form annotated when it differs from this entity's canonical label.

Introduction to Modern Economic Growth topic Solow growth model
Kaldor growth model contrastsWith Solow growth model
this entity surface form: Solow–Swan growth model
Kaldor’s stylized facts of economic growth relatedConcept Solow growth model
this entity surface form: Solow‑Swan model
Robert Solow familyName Solow growth model
this entity surface form: Solow
Robert Solow notableWork Solow growth model
this entity surface form: Solow–Swan growth model
Robert Solow notableWork Solow growth model
Robert Solow notableIdea Solow growth model
this entity surface form: Solow residual
Robert Solow theoryDeveloped Solow growth model
this entity surface form: Solow–Swan growth model
Ramsey–Cass–Koopmans model contrastsWith Solow growth model
this entity surface form: Solow–Swan model
Solow growth model publication Solow growth model self-linksurface differs
this entity surface form: A Contribution to the Theory of Economic Growth
Solow growth model hasExtension Solow growth model self-linksurface differs
this entity surface form: Solow model with human capital