Interactive Economic Models

The workhorse model of long-run economic growth. Explore how the savings rate, capital share, depreciation, population growth, and technological progress jointly determine a country's steady-state capital and output per effective worker. Includes real-time transition dynamics from any starting point.

An optimising extension of Solow where households maximise intertemporal utility. The phase diagram plots the capital and consumption loci, the saddle path, and a dynamic trajectory you can steer by dragging the starting point. Parameters include the discount rate and elasticity of substitution.