invisiblesun wrote:maks25 wrote:ugh..I have another exam at 1 today.
Can anyone explain the difference between the Harrod-Domar Growth Model and the Solow (neoclassical) model...that should take your thoughts off your LSAT grade lol.
Solow extended the Harrod–Domar model by:
Adding labor as a factor of production;
Requiring diminishing returns to labor and capital separately, and constant returns to scale for both factors combined;
Introducing a time-varying technology variable distinct from capital and labor.
The capital-output and capital-labor ratios are not fixed as they are in the Harrod–Domar model. These refinements allow increasing capital intensity to be distinguished from technological progress.
Credits to wikipedia. HTH
Thanks, I've been using wiki too. Better than the textbook haha