Question

The Solow model of long-run growth offers an explanation for why countries differ in their standard of living and why they grow over time. The model also offers prescriptions for how current differences in per capita income among countries might eventually narrow.

What are Endogenous growth models and how do they offer ways around the limitations of the basic Solow model?

Answer 1

limitations of basic solow model:

1.knowledge and technology progress

2.increasing returns to scale

3.human capital and education

Step-by-step explanation: