The Solow Model and Ideas

of the model.

influence growth and we've looked
look at some of the predictions

our output

to 2,

It's a determined by how fast.

curve up when output doubles,

which increases capital accumulation.

which creates more investment,

so does investment now once again
investment is greater than

you can click go to the next video.

We also have more material in our
development economics course in

This novel combination of ideas
sparked a dramatic increase in

that course will add population growth.

ready to move on,

so better ideas spur more output,

that's a doubling of our productivity
and that shift the output

depreciation.

accumulation.

so that's our super simple Salam Al.

They return to the last of very
loss ideals and ideas keep is

The transform.

And that means continual
shifts upward Oakley,

The combined a model of catching
up growth due to capital

This topic is a personal favorite of mine,

of videos the resource.

however.

productivity.

had never before been used in
the manufacturing of autumn.

productivity of a given capital stock
and the increase investment

New ideas are formed and how much
those new ideas to increase our

You can also visit Emory University.com
to see our entire library

an investment club.

Alternatively we can think about
this as increasing our

continual shifts upward
of the output curve.

the dynamics of capital accumulation
how changes in savings rates

We can now add ideas as a multiplier
better ideas multiply the

With a model of cutting edge growth
due to idea accumulation.

and it's up next.

If you want.

predict we end up in a steady.

Finally since ideas drive growth
on the cutting edge.

So let's go back to our previous
graph of capital and output.

We've covered a lot of the super-simple
solo model we've looked at

output from the same capital stock
who of any increases from one

We'd like to know what factors helped
to spur the creation of new

things not so much.

So we begin accumulating capital once
again and that further boost

Dave.

Check out our textbook modern principles.

like meatpacking bicycle and ruin
and it behind them in a way that

growing better ideas me in the lead
at one bank more output from

productivity.

One thing we've learned is that
the model seems to inevitably

ideas.

predicts will find some things are
predicts really well and other

The same time the processes are
continuing today and in all

Henry Ford for example took ideas
from a lot of other industries

So better ideas lead to growth
in 2-way all the increase

the same input of capital and labor.

Now,

industries increasing output per
worker across the economies.

With no growth.

Now imagine an idea is a costly
improvements you know have

prices,

The model dive deeper into the
data to see how well the model

continue reef in the world so
growth at the cutting edge.

which leaves the capital accumulation.

If you want to test yourself click
practice questions or if you're

We always stay to the left of
the steady state and there we

I further into the solar model.