What Is the Solow Model?

Today we’re exploring a foundational model that tries to answer a huge question: What drives long-term economic growth?

It’s called the Solow Growth Model, and it’s one of the most important tools economists use to understand why some countries grow rich, while others stay poor — and what it takes to sustain prosperity over time.

Let’s get smarter.

Why Study Growth?

In economics, we care a lot about GDP growth — the rate at which an economy produces goods and services.

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