The Solow Mo Model Unleashed: Understanding Eco Nicolas Vincent and Pierre Yared Yared Columbia CaseWorks ID: 130304
Abstract: Te !ollo"in# !ollo"in# s$reads s$readseets eets accom$an% accom$an% te &Te &Te 'olo" (odel (odel )nleased: )nleased: )nderst )nderstan an
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Copyright Information © 2013 by The Trustees o !olumbia Uni"ersity in the !ity o #ew #either this s(readsheet nor the associated case can be used or r without e)(licit (ermission rom !olumbia !ase*or%s& To obtain (ermission+ (lease "isit: www&gsb&columbia&edu-!ase*or%s or e,mail: !olumbia!ase*or%s.gsb&columbia&edu
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The Solow Model Unleashed: Understanding Economic Gro Nicolas Vincent and Pierre Yared
The ollowing (arameters in the yellow bo)es can be changed tart ng o(u at on tart ng a( ta 0
o(0
Starting Total /actor roducti"ity '0 o(ulation Growth 7 o( Em(loyment to o(ulation atio #-o( 4n"estment ate 4-$ Total /actor roducti"ity Growth 7 ' 5e(reciation ate
US 1-0 10000
/rance-US 0,30 0,03
/rance 4.-0
10 ./ 0,40 0,30 0/ -/
1,00 1,00 1,.1,00 1,00 1,00
10 ./ 0,-0 0,30 0/ -/
Output per Capita - France and U 1000000000000.000
10000000000.000
100000000.000
1000000.000
10000.000
100.000
1.000 1950
1960
1970
1980
1990
2
th Columbia CaseWorks ID: 130304
FRANCE
000
2010
2020
The Solow Model Unleashed: Understanding Economic Gro Nicolas Vincent and Pierre Yared
)NIT*D 'TAT* $ears rom #ow t
o(ulation o(
8abor #
!a(ital 6
!a(ital,8abor Total /actor atio 6-# roducti"ity '
1-0
1-0
0
10000
12
10,00
1-1 1-. 1-3 1-4 1-1- 1-2 1- 1- 10 11 1. 13 14 11 12 1 1 120
1-3 1- 1- 1. 1 1 12. 12 12 13 12 10 14 1 .0. .0 .10 .14 .1 ..3
1 . 4 20 2. 23 22 2 2 1 . 4 2
10331024 1101 1131 11211 1.04 1.4.1 1.2. 1314 13-12 13. 14.21 14-1-044 1-43 1-32 1.4. 1-3 12020 124.
1 121 123 12122 12 10 1. 13 11 1 1 10 11 1. 13 14 11
10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00
121 12. 123 124 1212 122 12 12 10
..2 .3. .32 .41 .4 .-1 .- .1 . .2.
1 3 2 100 10. 104 102 10
12.1 13- 12 1.42 120. .01.03.111. .1-2 ..00
12 1 1 1 .00 .01 .01 .0. .03 .03
10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00
wth Columbia CaseWorks ID: 130304
roduction $ 4n"estment 4
5e(reciation d6
roduction (er !a(ita $-o(
.24
3-
-00
1,-.
.-1 .1 . 30- 31. 3.01 3.24 334 34.4 3-01 3-2 3- 323 3.1 3030 402 414 4.-4 434-
-2 12 3 0 . 10010.2 10-0 1024 102 11.. 114 1121 112 1..3 1.4 1.2 1303
-12 -34 --1 - - 03 .1 3 -2 2 214 233 2-. 22. 2. 1. 33 -3 2-
1,31,201,221 1,33 1,3 1,4 1,00. 1,0-3 1,101 1,14 1,1 1,.30 1,. 1,30 1,34. 1,321,402 1,432 1,41,43
4432 4-3. 4. 42. 4. 4.2 -031 -13 -.43 -3-3
1331 130 13 141 144 142 1-0 1-41 1-23 10
1 40 . 100 103. 10- 100 110-
1,-1 1,-43 1,- 1,- 1,10 1,30 1,4 1,2 1,4 1,200
The Solow Model Unleashed: Understanding Economic Gro Nicolas Vincent and Pierre Yared
5ANC* $ears rom #ow t
o(ulation o(
8abor #
!a(ital 6
!a(ital,8abor Total /actor atio 6-# roducti"ity '
1-0
4-
..,-
.-0
11
10,00
1-1 1-. 1-3 1-4 1-1- 1-2 1- 1- 10 11 1. 13 14 11 12 1 1 120
4 42 4 4 -0 -1 -. -3 -4 -- -2 - - 1 . 3 4 2
34 -1 2 114 121 .- 34 -22 1.2 14 .1 432 - -3 1422 ..1 33.-3 42 241
322 - -. 1.2 1.1 .4330 4 2-1 1431 .1-0 3.31 4401 2410 1111 12. .-01-1 32-.32 -. 44310
11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11
10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00
121 12. 123 124 1212 122 12 12 10
20 21 2. 24 222 2 0 .
11...2 1341 .-.-1. 322 -1-1 -...2 1.2340 112-11 .2. 43143
1.42 1233 .41 4.24443 41112--1 144.3-. .13-- 3.4-3 404
11 11 11 11 11 11 11 11 11 11
10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00
wth Columbia CaseWorks ID:130304
roduction $ 4n"estment 4
5e(reciation d6
roduction (er !a(ita $-o(
43
13
13
10,.2
1041- .3-3 3-31 -. 24 11. 120 .3 40.- 031 0-0 13- .033 30-2- 4-43 2 10310 1-4242
.0 313 420 20 10- 1-0 .33-2 -32 0-1 1.02 1112 .2122 402 11-1 12. 132-3 .031 30- 4434
1 . 43 4 144 .12 3.4 23. 10 142 .420 320--- 33 1.-0 12. .143 4..1
1-,10 ..,313.,32 4,314 21,02 104,--1 1-3,23 ..,133.,. 4,.-0 21,-. 160-,12 16--,1 .6.,- 363-,30 464,-.26.2,2 106204,14 1-6241,-32 .3614,41
.3.1.2 34. -..43- 23-4 112-433 123... .44402 32.. --0- .34-3
-2 104420 1-2302 .3-04 3-.4-0 -.2 234-.. 11012 12-.2 .2203
33.4 42 14.41 .132.. 3.0-4 402 2.131 1012 1.. .4344-4
346043,3 -0603,236.3,-04 106.20,000 1-6..0,24. .34614,31 344633-,4-0632,-1 244621,22 160-610-,42
The Solow Model Unleashed: Understanding Economic Gro Nicolas Vincent and Pierre Yared
)NIT*D 'TAT*' 7 Partial $ears rom #ow t
o(ulation o(
8abor #
!a(ital 6
1-0
1-0
0
10000
12
10,00
1-1 1-. 1-3 1-4 1-1- 1-2 1- 1- 10 11 1. 13 14 11 12 1 1 120 121 12. 123 124 1212 122 12 12 10 11 1. 13 14 11
1-3
1
1033-
1
10,00
..3
124.
1
10,00
12 1
!a(ital,8abor Total /actor atio 6-# roducti"ity '
1 10 11 1. 13 14 11 12 1 1 .000 .001 .00. .003 .004 .00.00 .002 .00 .00 .010
331
13.
.2-0-
.0
10,00
4.
12
412.1
.1.
10,00
wth Columbia CaseWorks ID: 130304
ans"ers roduction $ 4n"estment 4
5e(reciation d6
roduction (er !a(ita $-o(
.24
3-
-00
1,-.
.-1
--
-12
1,3-
434-
1303
2-
1,43
-2
120
132-
1,.
1
.4-
.0
1,4