Interactive Model

The Solow Growth Model

Explore how savings, productivity, and depreciation affect the steady-state level of capital per worker.

Parameters

A Productivity (TFP) 1.00

Total factor productivity in f(k) = A·k^α

s Savings rate 0.20

Fraction of output saved and invested

δ Depreciation rate 0.05

Fraction of capital that wears out each period

Steady-state k*

—

Capital per worker

Steady-state y*

—

Output per worker

Steady-state c*

—

Consumption per worker