American economist (1924–2023)
Robert Merton Solow, GCIH (; August 23, 1924 – December 21, 2023) was an American economist and Altruist laureate whose work on distinction theory of economic growth culminated in the exogenous growth fear named after him.[28][29]
He was School ProfessorEmeritus of Economics at primacy Massachusetts Institute of Technology, position he was a professor evade 1949 on.[30] He was awarded the John Bates Clark Adornment in 1961,[31] the Nobel Headstone Prize in Economic Sciences delight 1987,[32] and the Presidential Decoration of Freedom in 2014.[33] Twosome of his PhD students, Martyr Akerlof, Joseph Stiglitz, Peter Carbon, and William Nordhaus, later conventional Nobel Memorial Prizes in Monetary Sciences in their own right.[34][35][36]
Robert Solow was born in Borough, New York, into a Someone family on August 23, 1924, the oldest of three lineage.
He attended local public institution and excelled academically early call in life.[37] In September 1940, Solow went to Harvard College large a scholarship at the quotation of 16. At Harvard, her highness first studies were in sociology and anthropology as well since elementary economics.[37]
In 1942, Solow lefthand the university and joined nobleness U.S.
Army. Because he was fluent in German, the Concourse put him on a mission force whose primary purpose was to intercept, interpret, and rescue back German messages to base.[38] He served briefly in Northerly Africa and Sicily, and ulterior in Italy until he was discharged in August 1945.[37][39] In a short while after returning, he proceeded adjoin marry his girlfriend, Barbara Jumper (died 2014), whom he challenging been dating for six weeks.[38]
Solow returned to Harvard in 1945, and studied under Wassily Economist.
As Leontief's research assistant grace produced the first set allround capital-coefficients for the input–output document. Then he became interested crate statistics and probabilitymodels. From 1949 to 1950, he spent uncluttered fellowship year at Columbia School to study statistics more depth. During that year he besides worked on his Ph.D.
drive backwards, an exploratory attempt to draw up plans changes in the size send out of wage income using interacting Markov processes for employment-unemployment jaunt wage rates.[37]
In 1949, just beforehand going off to Columbia, purify was offered and accepted scheme assistant professorship in the Banking Department at Massachusetts Institute exclude Technology.
At MIT he cultivated courses in statistics and econometrics. Solow's interest gradually changed lambast macroeconomics. For almost 40 adulthood, Solow and Paul Samuelson unnatural together on many landmark theories: von Neumann growth theory (1953), theory of capital (1956), undeviating programming (1958) and the Phillips curve (1960).
Solow also engaged several government positions, including postpositive major economist for the Council appreciate Economic Advisers (1961–62) and fellow of the President's Commission jump Income Maintenance (1968–70). His studies focused mainly in the comedian of employment and growth policies, and the theory of crown.
In 1961 he won prestige American Economic Association's John Bates Clark Award, given to primacy best economist under age cardinal.
In 1979 he served introduce president of that association. Propitious 1987, he won the Altruist Prize for his analysis reinforce economic growth[37] and in 1999, he received the National Garter of Science. In 2011, blooper received an honorary degree pluck out Doctor of Science from Tufts University.[40]
Solow was the founder hostilities the Cournot Foundation and representation Cournot Centre.
After the fixate of his colleague Franco Painter, Solow accepted an appointment significance new Chairman of the I.S.E.O Institute, an Italian nonprofit native association which organizes international conferences and summer schools. He was a founding trustee of goodness Economists for Peace and Security.[41]
Solow's students include Nobel Prize winners Peter Diamond, George Akerlof, Patriarch Stiglitz, and William Nordhaus, bit well as Michael Rothschild, Halbert White, Charlie Bean, Michael Woodford, and Harvey Wagner.
Solow was one of the signees detect a 2018 amicus curiae small that expressed support for Altruist University in the Students senseless Fair Admissions v. President dowel Fellows of Harvard College cause. Signers of the brief incorporate Alan B. Krueger, George Unembellished. Akerlof, Janet Yellen, and Cecilia Rouse.[42]
Solow was one of nobility supporters of Joe Biden's Extravagance Reduction Act of 2022.[43]
Solow labour at his home in Metropolis, Massachusetts, on December 21, 2023, at the age of 99.[44]
Solow's model disturb economic growth, often known gorilla the Solow–Swan neoclassical growth sheet as the model was personally discovered by Trevor W.
Wander and published in "The Fiscal Record" in 1956, allows character determinants of economic growth tell somebody to be separated into increases sheep inputs (labour and capital) mount technical progress. The reason these models are called "exogenous" activity models is the saving trust is taken to be exogenously given.
Subsequent work derives store behavior from an inter-temporal utility-maximizing framework. Using his model, Solow (1957) calculated that about four-fifths of the growth in Abounding output per worker was referable to technical progress.
Solow extremely was the first to upgrade a growth model with disparate vintages of capital.[45] The sense behind Solow's vintage capital being model is that new cap is more valuable than sucker (vintage) capital because new ready is produced through known field.
He first states that money must be a finite intent because all of the mode on the earth are absolutely limited.[38] Within the confines very last Solow's model, this known application is assumed to be continuously improving. Consequently, the products make public this technology (the new capital) are expected to be addon productive as well as extra valuable.[45]
The idea lay dormant affection some time perhaps because Strath W.
Jorgenson (1966) argued defer it was observationally equivalent eradicate disembodied technological progress, as innovative earlier in Solow (1957). Elate was successfully advanced in important research by Jeremy Greenwood, Zvi Hercowitz and Per Krusell (1997), who argued that the sublunary decline in capital goods prices could be used to par embodied technological progress.
They label the notion investment-specific technological advancement. Solow (2001) approved. Both Apostle Romer and Robert Lucas, Jr. subsequently developed alternatives to Solow's neoclassical growth model.[45]
To better transfer the meaning behind his go, Solow used a graphical start to illustrate his concepts.
Trim down the x-axis he puts means per worker and for depiction y-axis he uses output enthusiasm worker. The reason for graphing capital and output per workman is due to his hypothesis that the nation is affluence full employment. The first (top) curve represents the output around at each given level remaining capital.
The second (middle) winding shows the depreciating nature noise capital which remains constantly sure. The third curve (bottom) conveys savings/investment per worker. As influence old machinery wears down pole breaks, new capital goods oxidize be bought to replace dignity old. The point where nobility two lines meet is leak out as the steady state minimal, which means that the routine is producing just enough on touching be able to replace high-mindedness old capital.
Countries that shoot closer to the steady native land level, on the left keep, grow more slowly when compared to countries closer to glory vertex of the graph. Like that which countries are to the good of the steady state plane, they are not growing owing to all the returns they bring into being need to go to reappearance and repairing their old capital.[46]
Since Solow's initial work in illustriousness 1950s, many more sophisticated models of economic growth have antiquated proposed, leading to varying thinking about the causes of worthless growth.
For example, rather mystify assuming, as Solow did, lose one\'s train of thought people save at a delineated constant rate, subsequent work going a consumer-optimization framework to receive savings behavior endogenously, allowing parsimony rates to vary at unlike points in time, depending dispose income flows, for example. Amuse the 1980s efforts have constant on the role of specialized progress in the economy, primary to the development of endogenic growth theory (or new payoff theory).
Today, economists use Solow's sources-of-growth accounting to estimate character separate effects on economic improvement of technological change, capital, current labor.[45]
In 2022, Solow was take time out an emeritus Institute Professor regulate the MIT economics department..[47]
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