By Kelvin Tai - Economics and Management Student @ Harris Manchester College, Oxford
Robert Solow was one of the early members of the MIT Economics department. He won the 1987 Nobel Prize in Economic Sciences and this article will attempt to explain the growth model named after him. In the 1950s, many economists believed that the key to growth lay in accumulating capital. This makes intuitive sense: if you have a farm that produces a profit from its harvest, investing a portion of this profit into new production facilities would give greater capacity to generate even greater profits in future harvests.