Dynamics in the Solow-Swan growth model

Another Mathematica demonstration: this one visualizes the comparative statics as well as the adjustment dynamics resulting from a parameter change in the Solow-Swan growth model.

I took professor Sorger‘s advanced macro class on growth and business cycle theories last semester, so I noticed that some textbooks (such as Barro/Sala-i-Martin) don’t show the adjustment process of capital, per-capita output, consumption, etc. I think it helps intuition to visualize these variables, which is why I created this demonstration.

You can download the Mathematica notebook (you’ll need either Mathematica or the free Mathematica player to view this), or look at the online version here. (Unfortunately Wolfram changed the demo so only one graph is visible at a time.)

One thought on “Dynamics in the Solow-Swan growth model

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