Questions tagged [solow]
Referring to the Solow-Swan model of economic growth.
2
questions
4
votes
2answers
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Steady state Solow model with exogenous technological change
Consider the following question:
So, assume the standard function for production:
$$Y_t = A_t K^\alpha_tL^{1-\alpha}$$
where $L$ is fixed.
Then, the growth rate of output is:
$$g_Y \approx g_A + ...
3
votes
3answers
5k views
Alpha interpretation in Solow growth model
Consider the Solow model (without technology):
$Y = F(K, L) = K^\alpha L^{(1-\alpha)}$
What's the economic interpretation of $\alpha$? Prove and argue the result.
I see it as a share that goes into ...
