If we include population growth in the Solow model, we can model this concept by thinking of population growth as capital depreciation per person.

Question

Quizplus · Accepted Answer

In the Solow model, capital depreciation represents the amount of capital that is lost either through wear and tear or becoming obsolete. We can include population growth as a form of capital depreciation per person since an expanding population can lead to diminishing returns on capital per worker. Therefore, incorporating population growth into the Solow model is done by treating it as a form of capital depreciation per person.

If We Include Population Growth in the Solow Model, We