Rediscovering the Solow Model: An Energy Network Approach
AbstractThe present paper provides a new theory of capital accumulation and growth. While the law of motion for capital per worker is structurally identical to that of the neoclassical growth model (Solow, 1956), the underlying foundation is very different. In contrast to the Solow model, the purposed theory is based on thermodynamical principles and associations reflecting the geometrical properties of energy transporting networks. The theory predicts that in the absence of technological progress growth is ultimately limited by the capacity of networks to supply sufficient energy to support continual increases in the per capita stock of capital. We also examine the theory empirically, and find that cross country data supports its key predictions.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 07-09.
Length: 25 pages
Date of creation: Apr 2007
Date of revision:
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More information through EDIRC
economic growth; energy; networks;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-04 (All new papers)
- NEP-CSE-2007-05-04 (Economics of Strategic Management)
- NEP-HPE-2007-05-04 (History & Philosophy of Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carl-Johan Dalgaard & Holger Strulik, 2006.
"Subsistence – A Bio-economic Foundation of the Malthusian Equilibrium,"
06-17, University of Copenhagen. Department of Economics.
- Strulik, Holger & Dalgaard, Carl-Johan, 2007. "Subsistence: A Bio-economic Foundation of the Malthusian Equilibrium," Proceedings of the German Development Economics Conference, GÃ¶ttingen 2007 31, Verein für Socialpolitik, Research Committee Development Economics.
- Maria Fröling, 2011. "Energy use, population and growth, 1800–1970," Journal of Population Economics, Springer, vol. 24(3), pages 1133-1163, July.
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