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If you travel around the world, you will see tremendous variation in living standards of the people. The world’s poor countries have average levels of income per person, that are less than one-tenth the average levels in the world’s rich countries. These differences in income are reflected in almost every measure of the quality of life - from the number of television and telephones per household to the infant mortality rate and life expectancy. Much research has been devoted to the question that why some countries are rich while others are mired in poverty. Solow growth model has taken us a step closer to the answer.

Refer to the above scenario, which factors affect the level of income and output of a nation according to Solow growth model and how?
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by lovely</i>
<br />If you travel around the world, you will see tremendous variation in living standards of the people. The world’s poor countries have average levels of income per person, that are less than one-tenth the average levels in the world’s rich countries. These differences in income are reflected in almost every measure of the quality of life - from the number of television and telephones per household to the infant mortality rate and life expectancy. Much research has been devoted to the question that why some countries are rich while others are mired in poverty. Solow growth model has taken us a step closer to the answer.




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Refer to the above scenario, which factors affect the level of income and output of a nation according to Solow growth model and how?

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