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
Why growth matters, the central question the model addresses, and its core mechanism.
Assumptions
Production, market, and demographic assumptions that pin down the model.
Production and Capital Accumulation
The Cobb-Douglas production function, intensive form, and the law of motion for capital per effective worker.
Steady State and Dynamics
Closed-form steady-state quantities, growth rates on the balanced growth path, and convergence speed.
Phase Diagram
Visualise actual and break-even investment against capital per effective worker.
Golden Rule Equilibrium
The savings rate that maximises steady-state consumption per effective worker.
Comparative Statics, Evidence, and Extensions
How parameter shifts move the steady state, the central question of cross-country income gaps, growth accounting, conditional convergence, and the main extensions of the Solow framework.