ABSTRACT
This chapter describes generalizations of the Solow model, known in the literature, i.e. the Mankiw-Romer-Weil model developed in 1992 and the Nonneman-Vanhoudt model proposed in 1996. The Mankiw-Romer-Weil model considers human capital accumulation in addition to physical capital accumulation. Therefore, that model is also known as a model of human capital accumulation. A single stock of capital was analyzed in the Solow model and hence only one investment rate was analyzed, namely the rate of investment in physical capital. Two stocks of capital are considered in the Mankiw-Romer-Weil model and consequently two investment rates exist – the rate of investment in physical capital and the rate of investment in human capital. The golden rules of capital accumulation are defined in the Nonneman-Vanhoudt model as a combination of investment rates, where the sum of those investment rates also belongs to the interval that leads to a maximum long-term consumption per unit of effective labour.
