ABSTRACT
This chapter describes a basic version of the Solow economic growth model that provides foundations for the growth models characterized in the subsequent chapters of this monograph. It describes two special cases of the Solow model. These are the cases wherein the production function is a Cobb-Douglas power function or CES production function. The chapter details a description of the Solow growth model with a general, neoclassical production function. It also analyzes a special cases of the Solow model, namely models with the Cobb-Douglas production function and with the CES production function. In the first of those cases, both the point of Solow’s long-run equilibrium and the paths leading to that equilibrium can be determined. In the second case, a non-trivial steady state of the long-run equilibrium in the Solow model can be determined and its economic properties analyzed.
