 |
Links |
|
|
This is the net's first address on economic growth, with lots of information on research and data. |
|
|
Other languages |
|
|
Diese Seiten
gibt es auch |
|
|
Estas páginas también existe |
|
|
|
|
| The Solow growth model |
|
The Solow model, or the Neoclassical growth model, as it is also called, is another work horse of macroeconomics. This one helps us understand the long run. Why are incomes as high as they are? And why do they differ so much between countries?
This section offers elearning resources ranging from preliminary material on the production function, via brief descriptions and interactive applets of the Solow model, to a 2-country Solow model that offers some insights into the effects of international economic integration on incomes and economic growth.
|
|
 |
 |
At the core of the Solow model is the 3D production function that employs capital and labour as inputs. This applet visualises one specific type of production function, the Cobb-Douglas function and shows the impact of parameter changes.
|
 |
 |
The standard graph used to represent the Solow growth model is in two dimensions. This animation shows how to extract a 2D partial production function from a 3D production function.
|
|
|
|
|
|
 |
 |
|
 |
 |
This applet features the basic Solow model (or Neoclassical growth model) in which the labour force does not grow. You can experiment with parameters and learn about the steady state and the Golden rule.
|
| A very compact explanation of the theory behind the Solow growth model. It does not get any shorter.
|
|
|
|
|
|
 |
 |
|
 |
 |
This applet displays the per-capita version of the Solow model. Since the population grow permanently, income always continues to grow. Hence the steady state must be defined in terms of income per capita.
|
| This applet ventures into more advanced issues that arise with globalization. Focusing on two countries, you may experience how the integration of capital markets affects incomes, and, particularly, how the distribution of income responds, both internationally and within each country.
|
|
|
