Solow, Robert (Born 1924)
Robert Solow is a leading theorist of economic growth. In one of his two pioneering papers he argues that, with labour fully employed, the long-run economic growth rate is independent of the saving rate. In the other, he argues that only a minority of economic growth can be explained by increases in labour and capital inputs; the residual, which presumably reflects technological innovation, accounts for the majority. He also argues that new capital is more valuable than old capital because it embodies more up-to-date technology. He has made contributions on fiscal policy and wage bargaining as well.
KeywordsAmerican Economic Association Arrow, K. Budget deficits CES production function Cobb–Douglas functions First turnpike theorem Great Depression Growth theory Harrod–Domar growth model IS-LM model Keynesianism Leontief, W. Monetarism Phillips curve Samuelson, P. Saving rate Solow, R. Solow residual Swan, T. Technology
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