Essays on Solow

The Solow Model

For long, the concept of economic change has been interesting economists. The reasons why some of the countries are poor while others are rich or even the understanding of why some nations grow faster than others has constantly disturbed the understanding of most economists. The theory of economic growth has been put upfront in explaining the growth indices of different nations. In its place, the theory of economic growth aims at explaining whether poor countries can grow faster than their rich counterparts, catch up with them and close their income gaps, that is converge. Elaborated by Trevor Swan and ...

Abstract

This study analyzes the effects of Solow growth model in the Chinese economy. The study also illustrates how Golden rule affects the operations of an economy. The study stipulates the significant effects of both the Solow model and the Golden rule in the economic and population growth in the Chinese. Various factors and variables such as the savings rate, capital growth rate and the labor ratio in the Chinese economy. The study specifically uses the characteristics of the Solow model in the Chinese economy to stipulate the growth in China. The GDP of China is thus explained by the ...

ECON 4331W

Introduction The phrase "the rich get richer while the poor get poorer" has become a worldwide anthem at many political and economic forums. While these facts are actually true very few or practically no one goes forward to act in a manner seen to strike a balance if anything many individuals are individualistic and greedy. Elite economists from IMF recently released a study on the causes and consequences of rising income inequalities. It is believed as a result of income inequality there could arise a myriad of complex problems, most of which touch and significantly impact upon the economic ...

Introduction

For many years, financial crises have been pervasive. According to Collardi (2012), the frequency of occurrence of financial crises in the recent decades has doubled the occurrence during the Bretton Woods Period and the Gold Standard Era. Nevertheless, the occurrence of the 2007-2008 financial crisis came as a great surprise to many individuals. Initially, the crisis was seen as difficulties that were being experienced in the United States subprime mortgage market. This, however, spilled rapidly to the financial markets before spilling over to the real economy. This paper discusses the causes of the financial crisis and the measures that ...