The Solow Model of Economic Growth: Application to Contemporary Macroeconomic Issues

The Solow model of economic growth, developed in 1956, provided foundations for endogenous growth models. This book discusses six spheres of interest in modern macroeconomic theory and constructs and analyzes appropriate growth models to address these issues. It is a useful tool for analyzing contemporary growth-related challenges.

Format: Hardback
Length: 248 pages
Publication date: 21 October 2022
Publisher: Taylor & Francis Ltd

In 1956, economist Robert Solow introduced a neoclassical growth model, which served as an alternative or rival to Keynesian growth models. This groundbreaking model laid the foundation for subsequent growth theories, including the renowned models developed by Paul M. Romer and Robert E. Lucas in the 1980s and 90s. Over the past two decades, the authors have expanded upon the Solow model, excluding specific augmentations such as the Phelps golden rules of capital accumulation and the Mankiw-Romer-Weil and Nonneman-Vanhoudt models.

The book delves into six key areas of modern macroeconomic theory: the impact of fiscal and monetary policy on growth, the influence of returns to scale on production, the dynamics of factor mobility across countries, the role of population growth in development, the periodic nature of investment rates and their impact on growth, and the effects of exogenous shocks, such as epidemics. For each of these topics, the authors construct and analyze appropriate growth models that specifically address the relevant macroeconomic challenges.

This book not only upholds the neoclassical tradition of thought in economics, emphasizing quantitative economic change, but also explores alternative approaches to certain aspects of economic growth. By drawing insights from the Solow model, it provides valuable tools for analyzing contemporary issues related to growth.

Weight: 648g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032347752