Robert Solow’s Modern Economic Growth

S. Niggol Seo

Chapter Chapter 9 in The Economics of Optimal Growth Pathways, 2023, pp 191-208 from Springer

Abstract: Abstract The modern economic growth theory was developed by Robert Solow as a theory of capital accumulation in the economy. The Solow model introduced the economic growth model where changes in the economic output are determined by changes in capital, labor, and technology. Capital is both an input and the output of the model. Assuming a constant returns to scale technology, Solow showed that the optimal capital accumulation of the society can be explained by changes in savings (new investments) and changes in population (labor). The Solow model has long faced the critics who argue that the economic growth paths espoused by Solow are not sustainable, to which he responded by attempting to define sustainability in economic terms.

Keywords: Modern growth theory; Optimal capital accumulation; Production function; Sustainable development (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-20754-9_9

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DOI: 10.1007/978-3-031-20754-9_9

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