Questions tagged [solow]

Referring to the Solow-Swan model of economic growth.

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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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2 answers
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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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1 vote
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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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