(Feb., 1956), pp. It’s a field almost all economists have worked in since 1945.

Stable URL: 70, No. The Solow Growth Model The Solow per capita production function The production function model was applied to the study of growth problems by Robert Solow (American economist, Massachusetts Institute of Technology, Nobel prize 1990). He belonged to a small group of outstanding scientists considered to be the greatest of their time, who shaped the profession unlike any other group. Solow Growth Model Households and Production Review De–nition Let K be an integer. About four years ago, the OUP NY economics editor suggested to Professor Solow that he bring this book up to date, because of the large amount of recent literature, often referred to as the "new growth theory," or more technically as "endogenous growth theory". Prof. Solow retains the assumptions of constant rate of reproduction and constant saving ratio etc. Solow began with a production function of the Cobb-Douglas type: and shows that substitutability between capital and labour can bring equality between warranted growth rate (Gw) and natural growth rate (Gn) and economy moves on the equilibrium path of growth. R is homogeneous of degree m in x 2 R and y 2 R if and only if g (λx,λy,z) = λmg (x,y,z) for all λ 2 R+ and z 2 RK.Theorem (Euler™s Theorem) Suppose that g : RK+2! There’s only one Bob Solow, founding father of neoclassical growth theory. A Contribution to the Theory of Economic Growth Robert M. Solow The Quarterly Journal of Economics, Vol. R is continuously di⁄erentiable in x 2 R and y 2 R, with partial derivatives denoted by g The function g : RK+2! 1. 65-94.