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A Beginner’s Guide to the Solow Model

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Author Info
Sheldon H. Stein () (Cleveland State University)
Abstract

The Solow model is widely regarded as the workhorse model of the theory of economic growth. Although at one point this model was first encountered in graduate school, it has since filtered down to the intermediate and, occasionally, 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. The author demonstrates that under the assumption that the level of savings is autonomous, the essence of the stockflow adjustment of the Solow model becomes much easier to comprehend.

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Publisher Info
Article provided by Helen Dwight Reid Foundation in its journal The Journal of Economic Education.

Volume (Year): 38 (2007)
Issue (Month): 2 ()
Pages: 187-193
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Handle: RePEc:jee:journl:v:38:y:2007:i:2:p:187-193

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Related research
Keywords: depreciation; economic growth; investment; savings; steady state; stock-flow adjustment;

Find related papers by JEL classification:
A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

References listed on IDEAS
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  1. David Colander, 2000. "Telling Better Stories in Introductory Macro," American Economic Review, American Economic Association, vol. 90(2), pages 76-80, May. [Downloadable!] (restricted)
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This page was last updated on 2009-11-25.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.