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Rethinking Growth: An Extension of the Solow-Swan Model

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  • Timothy F. Power
  • Roman G. Smirnov

Abstract

The aggregate Cobb-Douglas production function stands as a central element in the renowned Solow-Swan model in economics, providing a crucial theoretical framework for comprehending the determinants of economic growth. This model not only guides policymakers and economists but also influences their decisions, fostering sustainable and inclusive development. In this study, we utilize a one-input version of a new generalization of the Cobb-Douglas production function proposed recently, thereby extending the Solow-Swan model to incorporate energy production as a factor. We offer a rationale for this extension and conduct a comprehensive analysis employing advanced mathematical tools to explore solutions to this new model. This approach allows us to effectively integrate environmental considerations related to energy production into economic growth strategies, fostering long-term sustainability.

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  • Timothy F. Power & Roman G. Smirnov, 2025. "Rethinking Growth: An Extension of the Solow-Swan Model," Papers 2506.10864, arXiv.org.
    • Handle: RePEc:arx:papers:2506.10864
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    1. La Torre, Davide & Liuzzi, Danilo & Marsiglio, Simone, 2015. "Pollution diffusion and abatement activities across space and over time," Mathematical Social Sciences, Elsevier, vol. 78(C), pages 48-63.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Guerrini, Luca, 2006. "The Solow-Swan model with a bounded population growth rate," Journal of Mathematical Economics, Elsevier, vol. 42(1), pages 14-21, February.
    4. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
    5. Thomas M. Humphrey, 1997. "Algebraic production functions and their uses before Cobb-Douglas," Economic Quarterly, Federal Reserve Bank of Richmond, issue Win, pages 51-83.
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