Economic Growth & Development: Growth Accounting, the Solow Model, Convergence & PPP
Simulate how saving, population and productivity drive long-run income, and compare countries fairly: growth rates and doubling times, Cobb–Douglas, a Solow simulation, the golden rule, growth accounting, convergence, PPP and a development index, with every cell checked as you go.
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About this course
In this course you put growth economics into cells, using fictional countries. You calculate growth rates and GDP per person, compare the rule of 70 with the exact doubling-time formula and compute compound growth over a decade. You build a Cobb–Douglas production function with marginal products, simulate the Solow model year by year toward its steady state and find the golden-rule saving rate with a chart. Then you split GDP growth into capital, labour and the productivity residual, measure catch-up time and the convergence slope with SLOPE, convert incomes at purchasing-power parity, combine health, education and income into a development index and project how an ageing population affects income per person.
Lessons
- Growth Rates, GDP per Person & Doubling Time: Rule of 70 vs the Exact Formula Pro
- The Cobb–Douglas Production Function: Output per Worker & Marginal Products Pro
- The Solow Model Step by Step: Simulating Capital per Worker toward the Steady State Pro
- The Golden Rule: Which Saving Rate Maximises Consumption per Worker? Pro
- Growth Accounting: Capital, Labour and the Productivity Residual Pro
- Convergence: Catch-up Time, Growth vs Initial Income and a Fitted Prediction Pro
- Purchasing-Power Comparisons and a Composite Development Index Pro
- Population Projections, Dependency Ratios and Income per Person Pro