Questions tagged [solow]

Referring to the Solow-Swan model of economic growth.

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Basic Solow Growth Model: Stability Proof

I am reading through McCandless "The ABCs of RBCs" this summer to get a preview of what I need to know for the coming Fall semester. It did not take long to find a statement that I can easily accept ...
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66 views

How to estimate a constant elasticity of substitution for a country in a solow model including human capital and scarce resources

For my thesis I was looking for some help due to the facts of my little knowledge of econometrics. I appreciate any help whether its directly dealing with my question or literature advice. Basically ...
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1answer
518 views

Taylor Series Approximation around steady state in Solow

In my Advanced Macro script, the professor says take TSA1 of the following equation: $(1+g)(1+n)k_{t+1} = sk^\alpha_{t+1} + (1-\delta)k_t$ where $g$ is technological progress, $n$ population growth, ...
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Taking the derivative of capital per effective unit of labor in the Solow model [closed]

I'm taking an intro macro course, and my calculus is pretty rusty. I'm going through some lectures notes right now where they derive the growth rate of capital in the Solow model like so: I'm ...
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1answer
101 views

Growth regressions over 3-year periods; regressors in average or year values?

Say that I want to estimate a growth regression basically similar to the Augmented Solow Model one, except my dependent variable is not Y/L, but it's the average GDP growth over a 3-year period. As my ...
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3answers
6k 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 ...
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2k views

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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2answers
373 views

Solow model, time and steady state

Suppose we have a Solow model: $$ Y(t)=C(t)+I(t) $$ $$ I(t)=sY(t) $$ $$ \dot K=I(t)-δK(t) $$ With a given Cobb-Douglas: $$ Y(t)=Z(t)K^aL^{1-a} $$ $$ y(t)=Y(t)/L(t) $$ $$ k(t)=K(t)/L(t) $$ $$ y=...
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0answers
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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5k views

Capital stock depreciation rate, how to calculate?

I am trying to work out the depreciation rate using the following information, it is an extract from a longer data set on capital stock: Just wanted to find out what the rate of depreciation is for ...

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