Model overview
Solow–Swan Growth Model
Exogenous growth model with capital accumulation, diminishing returns, and a steady state.
Navigate the learning sections below, then move into the interactive model once you want to experiment with parameters.
Introduction
Foundations, historical context, and first principles of the Solow-Swan model.
Assumptions
Production, market, and demographic assumptions that pin down the model.
Production and Capital Accumulation
Notation, the Cobb-Douglas core, and the law of motion for capital per effective worker.
Steady State and Dynamics
Closed-form steady-state quantities and the transition dynamics around them.
Phase Diagram
Visualise actual and break-even investment against capital per effective worker.
Golden Rule Equilibrium
The savings rate that maximises steady-state consumption.
Comparative Statics, Evidence, and Extensions
Parameter shifts, growth accounting, implications, critiques, and standard extensions.