This video contains an introduction to the basic version of the Solow model of economic growth without technological progress and without population growth. I show that this version of the Solow model can explain convergence periods well but that it fails to explain long-run economic growth. For explaining long-run economic growth, technological progress at a positive rate has to be assumed.
The slides are based on chapter 4 of the book
Prettner, K., Bloom, D.E. (2020). Automation and Its Macroeconomic Consequences. Theory, Evidence, and Social Impacts. Elsevier, Amsterdam, NL.
For the Solow model with technological progress, please see the following video:
https://youtu.be/sP_eQoPMAKg
You can find more material here:
https://www.youtube.com/playlist?list=PLHCd4G3qW92luj-FDhyVQgyrXjIuj_N0N
https://www.youtube.com/playlist?list=PLHCd4G3qW92kRLjoJN32TNz5QyhftE83j
#economicgrowth #economicdevelopment #macroeconomics
