According to the Solow model, a rise in the population growth rate accelerates the growth of total output but has no long-term impact on the growth of output per person.
In essence, the Solow-Swan model states that an economy will eventually arrive at a balanced-growth equilibrium, regardless of its initial state. The gain in output per worker in this scenario is solely dependent on the rate of technological development.
The Solow Growth Model, an exogenous model of economic growth, looks at changes in the amount of economic output over time as a result of differences in the rates of population growth, savings growth, and technological advancement.
When technology is used, the Solow model results in a steady rise in productivity. We come to the conclusion that new technology is exogenous when examining how it affects productivity. This suggests that technology evolves on its own, without help from other sources.
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