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Solow-model-in-Excel

Plug and play version of the Solow model in Excel. By adjusting the variables capital share of income, the rate of saving, the depreciation rate of the capital stock and the rate of economic growth; the model automatically calculates paramaters like the steady-state level of output and consumption, the golden rule level of output and consumption.

In the worksheet Solow - s unknown, you can derive the current saving rate if you know the steady-state capital stock per effective worker.

In the worksheet Convergence, you can calculate the new steady-state level of output if the rate of saving in the economy is changed.

Sources:

Heijdra, B. (2016). Foundations of Modern Macroeconomics (3rd Edition). Oxford: Oxford University Press.

Heylen, F. (2004). Macro-economie (2nd edition). Antwerp: Garant Uitgevers.

Mankiw, N. G. (2013). Macroeconomics (8th edition). New York: Worth Publishers.

Phelps, E. (1961). The Golden Rule of Accumulation: A Fable for Growthmen. American Economic Review, 51 (4), 638-643.

Romer, D. (2012). Advanced Macroeconomics (4th edition). New York: McGraw-Hill.

Solow, R. (1956). A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70 (1), 65-94.

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Plug and play version of the Solow model in Excel.

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