Research Paper on:
Solow's Growth Model and Economic Growth, Including Comparisons of Countries Along with 'The Golden Rule'

Unformatted Sample Text from the Research Paper:
expectancy, technology, trade and geography among other components which help to answer certain discrepancies which appear throughout the world economies today such as why some countries are rich and others  poor; why some countries grow faster than others; how some countries manage to sustain economic growth; and why growth miracles and disasters can occur. Stylized facts included with Solows assumptions  and model are those which have found that there are large variations in per capita income across economies; rates of economic growth vary a great deal across economies; growth rates  are not constant over time; countries can move between being rich and poor; growth in output and trade are related among others. Solows growth model emphasizes all of the aspects  of the importance of economic growth within a society. It also includes components of the supply and resources of a nation which can expand opportunity for a countrys production. Above  all, savings are critical in that they must be high enough to replace the depreciated capital and also provide for the workers. Lower savings means lower worker productivity and lower  living standards. The Solow growth model basically defines the conditions of different nations approach to an equilibrium level of capital stock (a steady-state). While developed nations such as the United  States have reached this level of steady-state, other developing nations are still experiencing rising levels of high savings and rising capital/labor ratios. Economic growth, its importance to society and the  accumulation of capital are intrinsically related and undergo certain regularities which allow for its modeling. Ruby (2003) writes that "the creation of Physical and Human Capital represent production not intended  for direct consumption. Rather, the creation and accumulation of capital is intended to increase the level of productivity of a nation and thus allow for an increase in the production