The Solow-Swan Growth Model

Here is an interactive visualisation of the Solow-Swan growth model. The model shows how capital accumulation, population growth, and technological progress interact to determine an economy's output. While a revolutionary model in macroeconomic growth theory, it lacks microfoundations and assumes exogenous savings rate and technological progress with dynamic optimisation.

Use the sliders to see how changing the parameters affects the steady-state levels of capital (k*) and output (y*).

Savings Rate (s): 0.3

Capital Share (α): 0.33

Depreciation (δ): 0.05

Population Growth (n): 0.01

Technological Growth (g): 0.02

Steady State Capital (k*): ? | Steady State Output (y*): ?

Transition Dynamics

See how the economy converges to the steady state from any starting level of capital (k_0).

Initial Capital (k_0): 1.0

Periods (T): 100