Interactive simulator
Solow Growth Model Simulator
In the Solow model, the saving rate determines the steady state: saving funds investment, which raises capital per worker until depreciation catches up. This simulator plots the saving/investment curve against depreciation and finds the steady-state capital stock. Raise the saving rate and watch the steady state rise — but growth returns to the rate of technological progress, not the saving rate. In this release this page is powered by the closest available interactive widget; a dedicated widget for this topic is planned.
Equilibrium solves Qd = Qs, so P* = (a − c) ÷ (b + d). Shifting demand changes a; shifting supply changes c. A ceiling only bites when set below P* (creating a shortage); a floor only bites when set above P* (creating a surplus).
How to use it
Set the saving rate.
Find the steady state where investment equals depreciation.
Raise the saving rate and watch the steady state move.
Observe that long-run growth still depends on technology.
What you will learn
- Explain how saving determines the steady state.
- Distinguish level effects from growth effects.
- State the role of technological progress.
Model notes
Cobb-Douglas technology with illustrative parameters; population growth and technological progress are fixed sliders, not derived. A growth-theory illustration, not a calibration.