Topic 9: Solow Growth Model
Videos
Some Facts About Economic Growth
- To motivate our study of growth models, this video introduces a few basic facts about economic growth within and across countries.
Solow Model: Setup
- The first model of economic growth we discuss is the Solow model. This video will introduce the basic ideas and notation for setting up the model.
Solow Model: Steady State
- Most of our Solow model study will revolve around steady-state competitive equilibrium. But first we need to define this concept and discuss how to find it!
Solow Model: Comparative Statics
- How does the steady-state competitive equilibrium respond to changes in the economic environment, such as the population growth rate, the saving rate, or total factor productivity?
Solow Model: Golden Rule
- There are many possible steady-state equilibria, but only one maximizes consumer utility in the steady-state: the Golden Rule steady state.
Convergence in the Solow Model
- When we look at the world today, we see poor countries and rich, fast growth and slow. What does the Solow model predict for the future of economic growth? Can poor countries grow rich? Can the slow growers speed up?