Solow's Model: Theoretical Analysis, Economic Interpretation and the Contrast with the Convergence Hypothesis

Abstract

Due to the complex analytical tools required, courses related to macroeconomic analysis are usually found arduous by students. It is in this context that we propose an applied coursework where (i) the convergence hypothesis is empirically tested; and (ii) using Solow’s model and associated empirical evidence, the non convergence of some countries is discussed. The ultimate goal of this applied coursework is to facilitate full comprehension of Solow’s model by means of a self-learning process leading the students to develop general cross-field skills such as knowledge on databases, use of worksheets, and the organization of information in tables and figures.