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1956
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Solow-Swan Growth Model

Y=AKαL1−α,k˙=sf(k)−(n+δ)kY = A K^\alpha L^{1-\alpha},\quad \dot{k} = s f(k) - (n+\delta)k

Long-run growth from savings, labor, technology, and capital depreciation.

By Robert Solow, Trevor Swan

Social Sciences
Solow-Swan Growth Model
1956 · Robert Solow
Why it matters: Separated capital accumulation from total factor productivity as growth drivers.

Discoverers: Robert Solow, Trevor Swan (1956)

What does it mean?

Long-run growth from savings, labor, technology, and capital depreciation.

Why should I care?

Separated capital accumulation from total factor productivity as growth drivers.

Variables & Units

SymbolNameUnitMeaning
YYOutput—GDP
AATechnology—TFP
K,LK,LInputs—Capital and labor
ssSavings rate—Fraction
δδDepreciation—Rate

Worked Example

Higher savings raises k* but not long-run growth without rising A.

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Solow-Swan Growth Model

Y=AKαL1−α,k˙=sf(k)−(n+δ)kY = A K^\alpha L^{1-\alpha},\quad \dot{k} = s f(k) - (n+\delta)k

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Long-run growth from savings, labor, technology, and capital depreciation.

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