Questions tagged [solow]
Referring to the Solow-Swan model of economic growth.
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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:
$$g_Y \approx g_A + ...
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Balanced Growth (Solow Model)
Sometime ago, I asked for the definition of steady state in the Solow Model. I came to the conclusion after reading the answer that the steady state is the sequence $\{(K(t), L(t), Y(t), C(t), w(t), r(...
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Alpha interpretation in Solow growth model
Consider the Solow model (without technology):
$Y = F(K, L) = K^\alpha L^{(1-\alpha)}$
What's the economic interpretation of $\alpha$? Prove and argue the result.
I see it as a share that goes into ...
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Proving the Global stability in the Solow Swan Model
Consider a simplified version of the Solow-Swan model in discrete time, where technology is normalized to one and the population size is constant.
The Solow equation is given by
\begin{equation}
...
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Would someone be able to help me solve capital per capita in the steady state (check my work)
Question: Suppose $C_t=(1-s)Y_t$ where $s>\sigma$ as in the basic Solow model. Solve for capital per capita in the steady state.
$Y_t=K^{\alpha}_tL^{1-\alpha}_t$
$Y_t=C_t+I_t+G_t$
$K_{t+1}=I_t+(1-\...
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Solow Model With Land as Factor
Given the production function:
$$Y = K^\alpha (AL)^\beta R^{1-\alpha -\beta}$$.
Where $L, A$ grow at exogenously given rates $n, g$ respectively. $R$ is land and is constant in supply and given that $\...
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