Solow Growth Model: A Numerical Example

This video reviews (non-graphically) the essential ideas of the Solow growth model and provides a numerical example, solving for the steady state capital-labor ratio, steady state GDP per worker, steady state investment per worker, and steady state consumption per worker.
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[@wrjazziel]

Can we stop for a moment and appreciate that he's teaching us besides taking care of his kid (s)... Thank you so much!

[@sarinarai4686]

I was also confused in class and didn't understand anything of solow growth model but trust me I got everything clear here.
thank you so much!

[@amankwahissahabdulai4676]

thank you very much.
I was confused in class and didn't understand anything of solow growth model but trust me I got everything clear here.
God bless you man.

[@Nobody-kg8md]

Amankwah Issah Abdulai things still fresh in your mind on this?

[@alexbleich6247]

thank you so much you are a better teacher than most professors

[@EconomicsinManyLessons]

I appreciate the kind words. Thank you!

[@bethgunner9092]

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[@bekahleah574]

Thanks! Have a Macroeconomics exam this week, this was very helpful!

[@marinaristic5875]

thank you so much. in a couple of minutes you explained 50 slide presentation from our professor ;)

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[@umairaurangzeb2460]

Thank you so much brother... may god gives you more knowledge..

[@EconomicsinManyLessons]

Thank you for the kind words!

[@j.k.6829]

This video was so so useful !! thank you so much for taking the time to make it :)

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[@josephproffit4198]

Thank you for the clear and concise explanation!

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[@bekahleah574]

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[@litianaligaimatau379]

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[@radixbobby]

This video helped thank you

[@MrMezo47]

Clear and concise, thank you

[@Hosseinshafii]

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[@mongobitch]

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[@vedatkozcaz8070]

Seriously thanks a lot.

[@samosajoemily7866]

thank you so much, this video was really a great help 🤩

[@Dvr165]

Awesome video, very clear!

[@lostsoul866]

I'm confused. This is what I found on Google: GDP per worker is 1.8 and Consumption per worker is 2. But your video shows the opposite. I remember my lecturer said that 1.8 is not the consumption.

[@rlo9045]

Hi, what if i have two variables with not just K but also L
The production function is Y=K^0.5 L^0.5

[@sueton1797]

maybe to late, but you divide the hole Term by L to generate the output per worker

[@INTP564]

The best explanation thak you so much

[@SureshKumar-mh2yn]

Thank you so much sir really helpful this video🙏

[@trisviel7777]

thanks a lot sir!! realy helpful

[@joeyxisaniceguy335]

Thanks! saving my skin for finals ahahaha

[@shannessjohnson1520]

I don't understand the math when Y= 35K^1/3.
How do you find Y when it's not easily divisible, and the power is 1/3?

[@md.amanatullahredoy3561]

Thank You so much sir

[@frankconte2457]

Good video; thanks!

[@supramentalmind9518]

You are the best

[@MediaWorkify]

Once again, this is awesome.
Few questions;
In a closed economy, is it not C+I+G? Why have you ignored G? The government does exist, although it is only trade that is not considered within this equation. Do you assume a closed economy is C+I based on the solow growth model and the fact that G isn't necessary? Please respond.
Thanks!

[@ronaldwakhu2520]

Hi,in the Solow growth model one of the demand side assumptions is that there's no government intervention

[@abigailbilao5770]

hi. i just want to ask about the last part in the steady state capital labor ratio. how did you arrive with 2=k^1/2 from 2 = k/k^1/2. thnks

[@EconomicsinManyLessons]

+Abigail Bilao. From the rules of exponents: (X^a)/(X^b) = X^(a - b). Therefore, K/(K^1/2) = K^(1 - 1/2) = K^(1/2) . [P.S. In case you forgot, note that K = K^1]

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[@shannonp6918]

THANK YOU!!!

[@wayneblackwood2208]

wonderful!

[@ntcuong01ct1]

Dear Friends, Could you explain the meaning of Depreciation rate of this model?. Thank you.

[@ксюаве]

thank you!!

[@너나잘하세요-m2k]

Thank you

[@MA-vv1yk]

Thanks for the video. Can you please explain why the change in the capital to labour ratio is equal to investment - depreciation (capital).

[@mr.dopects]

The video is helpful.

[@皮豬]

IF production function is Y = KθL1-θ ,how about solver?

[@vaneguttmann3246]

A very helpful video!
I'm wondering why K=4?
Thanks.

[@vatikavats9217]

could you please make a video on harrod domar model?

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[@Nobody-kg8md]

In my professor’s text book, it says steady state capital to set the production function (Y = AK^alphaN^beta) and savings rate, and then says to set it equal to delta-K (depreciation rate) then solve for K to end up with K* = A[(sA/delta)^1/1-alpha times HN](HN)^1-alpha. I’m given TFP (A) and N, could I just follow that, and still come out with the same answer?

[@Nobody-kg8md]

Oh whoops I think I gave you steady state output. I meant can I just factor until it’s in the format of K* = (sA/delta)^1/1-alpha * N ?

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