The Solow Growth Model for Eternity
The geo-famed Solow growth model is built for Eternity over the River, wittingly or otherwise. First of all, the so-named growth model does not have the time dimension. As an ABC in macroeconomics, the growth in GDP is defined to be ( Δlog Y)/ Δt . Voila, there in "growth" certainly is the time dimension in the negative (T -1 , T for time dimension). Incidentally, the negative sign enters in the equation for the purpose of performance evaluation only. Take the marathon vs. the 100 meter dash for example. The length (L 1 in the space dimension) of running of the former is larger than that of the latter by many “orders of magnitude,” so to speak. You know what? The Solow model predicts that always and everywhere, “The winnerrrrrrr is the marathoner!” The running speed is just irrelevant, or more precisely the time duration ( Δt ) does not c...