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Building Solow Growth Model with Excel

According to the Solow Growth model, if we start with L=1 and K=1 in year1, we can get a picture of GDP per worker and capital per worker in 100 years.
Solow growth model graph

Assumptions and sensitivity analyses with regard to α, n and s are shown below:
Assumptions & Sensitivity Tables
======= addenda by the prof – I can’t figure out how to put a graph in a comment. Here’s what happens as soon as you put in productivity growth, here at 0.2% per period.
adding productivity


  1. So growth ends, more rather than less, within 20 years – capital accumulates quickly.

    • christycui christycui

      right, showing diminishing returns

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