Exploring endogenous growth through simulation

Ariel Shwayder

The Journal of Economic Education, 2025, vol. 56, issue 2, 154-170

Abstract: Undergraduate and master’s-level macroeconomics courses often teach economic growth using the standard exogenous growth (Solow-Swan) model, which can lead to discussions about the importance of productivity. Instructors wishing to deepen the conversation may want to discuss productivity growth sources and introduce endogenous growth models. The author of this article presents a spreadsheet-based simulation exercise of a two-sector endogenous growth model. This simulation allows students to explore an endogenous growth model without having to understand the algebraic details. Students can adjust model parameters and examine the impact on short-run and long-run levels and growth rates of output-per-worker and consumption-per-worker. Classroom discussion can then focus on economic reasoning about the importance of productivity, research into productivity, and the short-run versus long-run tradeoffs present in much of macroeconomics.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00220485.2025.2453430 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jeduce:v:56:y:2025:i:2:p:154-170

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/VECE20

DOI: 10.1080/00220485.2025.2453430

Access Statistics for this article

The Journal of Economic Education is currently edited by William Walstad

More articles in The Journal of Economic Education from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().