Solow Growth Model, Part I

In this video, I take a look at the basic Solow growth model and the steady-state capital and output per worker determination.

[MrGotro]

This is such an excellent, refreshingly crisp and transparent explanation. I have been searching to find something like this, something that gives me an intuitive understanding of the models. So many professors try to teach with complexity b/c they have this unwavering concern that if they sound too simple or if too many people understand what they're saying, then they lose that sense of intellectual mystic.

I would absolutely argue on the contrary. Anyone can take a complex topic and make it seem even more complex, but it takes a special kind of instructor - like I found here - who can take a subject and make even the lay person understand. That is the mark of a good instructor in my opinion b/c it shows that they know the subject material so good that they can simplify it to very workable components.

For the same reason is why I loved Milton Friedman so much. He had a very unique way of taking the most complex topics and explaining them in a very common way. That is the mark of a good, intelligent instructor.

Thank you for your explanation.

[ramdevgiri]

I have watched almost all video available in YouTube on this topic and read all the article in internet but never get understood and finally I got this video and now it makes me clear like the sky...I have no appropriate words to say thank

[sudhanshusingh]

like other viewers, i have my exam too and i cannot appreciate how much i loved your explanation. (yes, our intake capacity suddenly increases a day before an exam)

[raihankhan]

You have a gift for teaching a chapter worth of content broken down simply.

[adil.elmacademy]

thank you so much for this wonderful video . kindly make video on all growth models.

[lucamontanaro]

You should become a prof at my uni, I learned two lectures of material in 25 minutes between the two vids.

[VARNASAJEE]

This is so helpful. I have an exam in a couple of hours and this really saved me. So thank you! :)

[whitehat]

Hi Zeb! Life saying just when I'm entirely clueless about Economic Growth Models with Examinations for Masters starting next week. Couldn't find other models by you. Please lemme know if you did other Models. That would complete my syllabus partially. Thanks again!

[whitehat]

Look not here to criticise anyone pertaining to their race or origin, but found a plethora of vids by Indian orators and I couldn't help but get exasperated. There's always a room for improvement. Always a Model there or sth that's exemplary. To those orators out there, presentation is an art. Career-Time dependent function.

[zalisilendzala]

You are the best. You have helped me with your explanation. Thank you.

[FluffleOW]

thank you zebulen ! really easy to understand.

[agnesmuani]

Easy to understand explanation. Thank you.

[Aimsixmeals]

Very good, appreciate your time you took for this video!

[ntcuongct]

Dear Friends, Could you explain the meaning of Depreciation rate of this model?. Thank you.

[abuzainabahmadsyakirnorazli]

great video. what app that u use as whiteboard?

[bungus]

oooohh! so ∆k=0 means that the capital stock is not changing, for the rate of capital creation is the same as the rate of depreciation at equilibrium.

[kshirodmishra]

Can u tell me sir when neo classical growth equilibrium possible

[皮豬]

Assume that country A has the following production function Y = KθL1-θ where θ is 0.62. The saving rate (s) is 20% per year. The depreciation rate (δ) is
5% per year. The population growth rate (n) is 2% per year.
a) What is the steady state level of capital stock per capita, k*? What is the steady state level of
output per capita, y* ? What is the steady state level of consumption per capita, c* ? Show your
results in a suitable diagram.