Let us make an in-depth study of the Solow's Model of Economic Growth. After reading this article you will learn about: 1. Prediction of the Solow Model 2. Solow's Theory and Evidence. Prediction of the Solow Model: The Solow model makes the prediction that whether economies converge depends on why they differed in the first place. On the one hand, [...]
Let us make an in-depth study of the Extension of the Solow Model. The two Extension of the Solow Model are: 1. Population Growth 2. Technological Progress. Population Growth: We now assume that population does not remain fixed. Instead, the population and the size of labour force grow at a constant rate n. The Steady State with Population Growth: We [...]
The below mentioned article provides notes on Solow's Analysis of Growth. The Solow model shows how nations grow through the interplay of saving, population growth and technological progress. Solow has proved conclusively that : (1) capital formation, (2) growth of the labour force and (3) technological progress conjointly affect the level of an economy's output and its rate of growth [...]