Questions tagged [solow]

Referring to the Solow-Swan model of economic growth.

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Solow growth model deriving solutions

I was reading a note on Solow model in continuous time, and it said we can derive K, C, and Y from the key equation. But the steps were omitted, and I have no clue with it. How can I derive these ...
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Solow Model - criticism of Harrod model

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'...
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Improve my solution: Question on solow model

There is a question about Solow growth and Ramsey model, compared to solow model, the Ramsey model is better to explain growth patterns across countries because it predicts a slower convergence ...
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How do I work with the growth accounting framework in a regression?

I am currently writing my master's thesis with the topic "The impact of digitalization on economic growth in China and Germany". My idea is to take a technology such as Industry 4.0, IoT or ...
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Regression based on the Solow Model

If we have the following regression based on the Solow model: log(yi) = β0 + β1 * log(si) + β2 * log(ni + gi + δi ) + ei And we know that based on: y* = 〖(s/(n + δ + g))〗^(α/(1-α)) log(y*) = α/(1-α) * ...
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How to derive and draw phase diagrams: Ramsey-Cass Koopmans model

I am confused by how to construct phase diagrams. For instance, I have been given the following two equations from the Ramsey model: \begin{align*} \frac{\dot C}{C}=&\frac{1}{\gamma} (F_K(K) - \...
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34 views

Which model gives a more accurate representation of growth?

Does the Solow model or the combined Romer - Solow model give a more accurate representation of growth?
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58 views

Attributing Labor Productivity Gains to Capital Deepening vs. Total Factor Productivity Growth

In a traditional Solow-Swan growth model, you can decompose growth in labor productivity (output/hour) into a component stemming from total factor productivity growth and another stemming from capital ...
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Trying to apply Solow model to the US econmy

In a textbook application I try to apply Solow model to the US economy. What will be a ballpark estimate of the saving rate and the depreciation rate? Edit: To follow up, assume Cobb-Douglas with ...
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32 views

Growth accounting: technological progress grows at near zero rate

In a growth accounting exercise I backed out the time path of technical progress augmenting a factor. Annual growth rate of this factor saving innovation is very close to zero in the last few years. ...
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Solow model - max steady state output per worker vs max steady state consumption per worker

$$Y=K^{1/3}G^{2/9}(AL)^{4/9}\\\frac{\dot{A}}{A}=\frac{\dot{L}}{L}=0.01\\\dot{G}=tY-0.03G\\\dot{K}=0.2(1-t)Y-0.03K$$ So far, we have a system that shows a basic Solow model with public and private ...
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Could you guys recommend lecture notes or papers that show the step by step of the uzawa-lucas growth model?

I have to study the differences between the model of uzawa-lucas, solow and harrod-domar, so if you guys could reccomend me something to study the uzawa-lucas model, with an easy lecture notes to ...
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In Solow growth model, increasing consumption drops production which should measure GDP?

Consider Solow growth model $Y=F(K,AL)$ where $A$ measures knowledge progress, $K$ is capital and $L$ is label. I have suppressed temporal dependence. I am going to assume $L$, $A$ grow exponentially ...
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How does identical capital-output ratios imply identical rental prices of capital?

In the context of the Solow model, I need to show that if two countries have the same capital output ratio then they have the same rental prices of capital (they have same production functions). I ...
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Solow growth model on firms level

Probably a silly question, but I just have to make sure. I am wondering whether it is acceptable to use the solow / solow-swan growth model to model the growth of firm instead of growth of an economy?