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Solow Growth Model Insights and Analysis

The authors test the Solow growth model by examining if capital accumulation and population growth can account for cross-country income differences. The findings support capital accumulation but contradict diminishing returns to capital, with the authors assuming constant population growth and depreciation rates despite cross-country differences that could affect results.

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Ari Shusterman
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62 views1 page

Solow Growth Model Insights and Analysis

The authors test the Solow growth model by examining if capital accumulation and population growth can account for cross-country income differences. The findings support capital accumulation but contradict diminishing returns to capital, with the authors assuming constant population growth and depreciation rates despite cross-country differences that could affect results.

Uploaded by

Ari Shusterman
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Economic Development

Reading Chapter 3
Solow Growth Model

Excerpted journal article:


Greg Mankiw, David Romer, David Weil, “A Contribution to the Empirics of Economic
Growth? (Quarterly Journal of Economics, 1992)
Please answer in 1-3 sentences each:

1. What do the authors identify as the central question when testing if the data supports
the Solow growth model?

2. Which findings support the classical Solow model? Which findings contradict it?

3. What are the author’s assumptions about g and δ, and what do you think about them?

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