Solow Model 2 - Comparative Statics

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Using the Solow Model. What does the model predict when savings rates or other variables change?

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  1. Marginal Revolution University
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This has been incredibly useful for my development economics class! Thank you for going so in-depth on the mathematical representation of these concepts

Maoilios
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If two economies A and B are identical in every respect except that Sa>Sb and Na>Nb. What will happen to them in the long run?will A have higher steady state output per unit of effective labor than B?

sanjidasan
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Is there any rational for the productivity curve to be =sqrt(k) beyond the fact that the sqrt of K's 1st derivative is always positive and second derivative is always negative?

michalchik