Abstract
It has been nearly seventy years since the creation of the Solow-Swan model, which has been the basis of measuring long term economic growth in the economic field. We hoped to test the accuracy of the Solow model in modern times and to see what results we could get to further gain insight on growth in developing and developed countries. This paper evaluates the effectiveness of the Solow model by creating a value for elasticity of output with respect to capital from the US Solow model by using sensitivity analysis, and then creating Solow models for Germany, India and Japan using formulas created to estimate capital, labor, and technological growth. We found that under the right conditions, the Solow model can be effectively applied to predict economic growth yet fails to address many problems like corruption or government policies.
Cite
MLA
Shen, Troy. “Analyzing the Effectiveness of the Solow Model in the 21st Century.” Journal of Secondary and Undergraduate Research, vol. 3, no. 2, 2025
APA
Shen, T. (2025). Analyzing the Effectiveness of the Solow Model in the 21st Century. Journal of Secondary and Undergraduate Research, 3(2)
Chicago
Shen, Troy. “Analyzing the Effectiveness of the Solow Model in the 21st Century.” Journal of Secondary and Undergraduate Research 3, no. 2 (2025).