ABSTRACT

It is assumed in the original Solow growth model that the number of workers rises at a constant growth rate, so that the value of that macroeconomic variable increases exponentially to infinity. We modify that assumption in the analyzes contained in this chapter, proposing two alternative versions. We assume in version 1 that an increase in the number of workers forms a logistic curve that approaches an asymptote. On the other hand, it is assumed in version 2 that if labour productivity rises, the growth rate of the number of workers drops from infinity to zero. The chapter describes the economic and mathematical properties of alternative trajectories of the number of workers. It contains analytical solutions of the Solow model at a logistic curve of the number of workers and at a growth rate of the number of workers falling as labour productivity rises.