Best known for his contribution to the theory of economic growth, Solow elucidates the root of growth by breaking it down into distinct components, namely: Labour, Capital, and Technological change (AKA, Solow Residual). Assuming no immigration, labour is capped at the maximum population size. Capital is obtained from saving, meaning more saving is equivalent to more growth. In the long-run, however, due to the finite amount of labour and capital, growth is reliant more on technological change.
Best known for his contribution to the theory of economic growth, Solow elucidates the root of growth by breaking it down into distinct components, namely: Labour, Capital, and Technological change (AKA, Solow Residual). Assuming no immigration, labour is capped at the maximum population size. Capital is obtained from saving, meaning more saving is equivalent to more growth. In the long-run, however, due to the finite amount of labour and capital, growth is reliant more on technological change.