How are the three versions of the Solow Growth Model different? Why do you think we need...

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Economics

How are the three versions of the Solow Growth Modeldifferent?
Why do you think we need three different versions of the samemodel? (Hint: Steady-state growth rates)
What is convergence and conditional convergence? Giveexamples.Â Â

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Solow model is a neoclassical economics model which states theeconomic growth in the long runIt explains the economic growth bylooking into different variables like capital accumulationlabourturnover technological advancement etcMathematically it consistsof a non linear differential equation There are theree versions ofthe model as it assumes that income can increase due to threefacrors which are capitalboth physical and humaninvestment andideas He also introduced the three states of the growth those arecatching up rate this rate is for poorer countries and they usecapital and investment to reach to point of maximisation Steadyrate at this point the output is steady or we can say it is a stateof zero output Cutting down rate it is prevelant in economicallywealthy nations and it requires the use of new and innovative ideasto increase See Answer

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