I have started out reading seminal paper of Solow - Solow Growth model. It starts out with discussing weaknesses in Harrod Domar Model, a simple model of economic growth which featured prior to solow's work. You can read about Harrod model here


While discussing about Harrod Domar Model, Solow said it consistently uses short run tools for long run analysis (see the picture). But I don't understand why he called 'the multiplier' as a short run tool and 'margin(al) [product]' as a long run tool?


  • $\begingroup$ the multiplier is the capital coefficient? $\endgroup$
    – Guy Louzon
    Sep 23, 2018 at 17:50


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