A Child's Guide to the Solow Model
17 Pages Posted: 30 Mar 2004
Date Written: March 20, 2004
The Solow model is widely regarded as the workhorse model of the theory of economic growth. While at one point this model was something first confronted by graduate students, it has filtered down to the intermediate and sometimes to the principles of macroeconomics course. Many have commented on how difficult it is to teach the Solow model to undergraduates, especially to students in the principles of macroeconomics course. In this paper, we demonstrate that if we assume that the level of savings is autonomous, the essence of the stock-flow adjustment of the Solow model becomes much easier to comprehend.
JEL Classification: A22, E10, O40
Suggested Citation: Suggested Citation