[{"data":1,"prerenderedAt":58},["ShallowReactive",2],{"term:solow-growth-model":3},{"term":4,"related":45},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":38,"stem":39,"takeaways":40,"__hash__":44},"terms\u002Fterms\u002Fsolow-growth-model.md","Solow Growth Model",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-solow-growth-model","Understanding Solow Growth Model",[16,17,18],"p",{},"Developed by Robert Solow in 1956, the model shows that adding capital raises output but with diminishing returns, so an economy settles at a steady state. Higher saving raises the level of income, but only technological progress delivers lasting growth in output per person.",[16,20,21],{},"It explains why poorer economies can grow faster as they catch up, and why productivity is the key to long-run prosperity.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"economy","A model showing how saving, population growth and technology determine long-run living standards.","md",[],{},true,"\u002Fterms\u002Fsolow-growth-model",[35,36,37],"total-factor-productivity","real-gdp","gdp",{"title":6,"description":28},"terms\u002Fsolow-growth-model",[41,42,43],"Capital accumulation has diminishing returns.","Long-run growth per person comes from technology.","It predicts catch-up growth for poorer economies.","ISRmzfWsHv-k3ulrv8jgi-Wjt-f6Ywlh-tRpvisGSww",[46,50,54],{"title":47,"description":48,"path":49},"Gross Domestic Product (GDP)","The total value of goods and services produced in a country over a period.","\u002Fterms\u002Fgdp",{"title":51,"description":52,"path":53},"Real GDP","GDP measured at constant prices, so it changes only when the quantity of output changes.","\u002Fterms\u002Freal-gdp",{"title":55,"description":56,"path":57},"Total Factor Productivity (TFP)","Output growth that is not explained by more labor or capital.","\u002Fterms\u002Ftotal-factor-productivity",1793374005952]