The Solow model of economic growth : : application to contemporary macroeconomic issues / / Paweł Dykas, Tomasz Tokarski and Rafał Wisła.

• Superior document: Routledge Studies in Economic Theory, Method and Philosophy
• VerfasserIn: Dykas, Paweł,; Tokarski, Tomasz, 1967-; Wisła, Rafał,
• TeilnehmendeR: Tokarski, Tomasz, 1967-; Wisła, Rafał,
• Place / Publishing House: London, England ;, New York, New York : : Routledge,, [2023]; ©2023
• Year of Publication: 2023
• Language: English
• Series: Routledge Studies in Economic Theory, Method and Philosophy
• Physical Description: 1 online resource (265 pages)

"In 1956, Solow proposed a neoclassical growth model in opposition or as an alternative to Keynesian growth models. The Solow model of economic growth provided foundations for models embedded in the new theory of economic growth, known as the theory of endogenous growth, such as the renowned growth models developed by Paul M. Romer and Robert E. Lucas in the 1980s and 90s. The augmentations of the Solow model described in this book, excepting the Phelps golden rules of capital accumulation and the Mankiw-Romer-Weil and Nonneman-Vanhoudt models, were developed by the authors over the last two decades. The book identifies six spheres of interest in modern macroeconomic theory: the impact of fiscal and monetary policy on growth; the effect of different returns to scale on production; the influence of mobility of factors of production among different countries on their development; the effect of population dynamics on growth; the periodicity of investment rates and their influence on growth; and the effect of exogenous shocks in the form of an epidemic. For each of these issues, the authors construct and analyze an appropriate growth model that focuses on the description of the specific macroeconomic problem. This book not only continues the neoclassical tradition of thought in economics focused on quantitative economic change but also, and to a significant extent, discusses alternative approaches to certain questions of economic growth, utilizing conclusions that can be drawn from the Solow model. It is a useful tool in analyzing contemporary issues related to growth"-- Provided by publisher.

Table of Contents

Cover -- Half Title -- Series Page -- Title Page -- Copyright Page -- Dedication -- Table of Contents -- List of figures -- List of tables -- Author Biographies -- Introduction -- 1 R. M. Solow's inspirations -- 1.1 Introduction -- 1.2 Harrod's equilibrium -- 1.3 Domar's equilibrium -- 1.4 Kaldor's economic growth model -- 1.5 Principle of the original Solow economic growth model -- 1.6 Conclusions -- 2 The Solow model -- 2.1 Introduction -- 2.2 The Solow model with a neoclassical production function -- 2.3 Special cases -- 2.3.1 The Cobb-Douglas production function -- 2.3.2 The CES production function -- 2.4 Phelps' golden rules of capital accumulation -- 2.5 Conclusions -- 3 Generalizations of the Solow model (the Mankiw-Romer-Weil and Nonneman-Vanhoudt models) -- 3.1 Introduction -- 3.2 The two-capital Mankiw-Romer-Weil model (a model of human capital accumulation) -- 3.2.1 The model with a neoclassical production function -- 3.2.2 A model with the Cobb-Douglas production function -- 3.2.3 A model with the CES production function -- 3.2.4 Golden rules of accumulation in the Mankiw-Romer-Weil model -- 3.3 The multi-capital Nonneman-Vanhoudt model -- 3.3.1 The model with a neoclassical production function -- 3.3.2 A model with the Cobb-Douglas production function -- 3.3.3 A model with the CES production function -- 3.3.4 Golden rules of accumulation in the Nonneman-Vanhoudt model -- 3.4 Conclusions -- 4 Fiscal and monetary policy vs economic growth -- 4.1 Introduction -- 4.2 Fiscal policy in a Mankiw-Romer-Weil model -- 4.2.1 The basic model -- 4.2.2 A model with public capital -- 4.3 Monetary rules in a Domar-Solow model -- 4.4 Conclusions -- 5 Economic growth at returns to scale conditions -- 5.1 Introduction -- 5.2 Returns to scale in a single-capital (Solow) model -- 5.3 Returns to scale in a two-capital (Mankiw-Romer-Weil) model.

5.4 Returns to scale in a multiple-capital (Nonneman-Vanhoudt) model -- 5.5 Golden rules of capital accumulation at returns to scale conditions -- 5.6 Conclusions -- 6 Bipolar growth models with investment flows -- 6.1 Introduction -- 6.2 A model with exogenous investment flows -- 6.3 A model with investment flows conditional on capital productivity -- 6.4 Numerical simulations of economy growth trajectories -- 6.4.1 Exogenous investment flows -- 6.4.2 Investment flows depending on capital productivity -- 6.5 Conclusions -- 7 The gravity model of economic growth -- 7.1 Introduction -- 7.2 Assumptions of the model -- 7.3 A solution of the model -- 7.4 Golden rules of capital accumulation -- 7.4.1 Maximization of the geometric mean of long-run consumption per worker -- 7.4.2 Maximization of long-run consumption per worker in each of the economies -- 7.5 Conclusions -- 8 Solow equilibrium at alternative trajectories of the number of workers -- 8.1 Introduction -- 8.2 Assumptions about alternative trajectories of the number of workers -- 8.3 Analytical solutions -- 8.3.1 Growth paths at a logistic trajectory of the number of workers -- 8.3.2 Growth paths at a growth rate that drops with rising labour productivity -- 8.4 Numerical simulations -- 8.5 Conclusions -- 9 The Solow equilibrium at sine-wave investment rates -- 9.1 Introduction -- 9.2 Assumptions of the model -- 9.3 Equilibrium in the model -- 9.4 Calibration of parameters and numerical simulations -- 9.5 Conclusions -- 10 SIR-Solow model -- 10.1 Introduction -- 10.2 An epidemiological-economic model -- 10.2.1 The epidemiological module -- 10.2.2 The economic module -- 10.3 Calibrated model parameters -- 10.3.1 Parameters of the epidemiological module -- 10.3.2 Parameters of the economic module -- 10.4 Scenarios and numerical simulation results -- 10.5 Conclusions -- References -- Index.