Economics · Macroeconomics

Solow Growth Live: Costaria National Development Council

Build the Solow growth model from scratch, calibrate it to Costaria (a fictional mid-income LATAM economy), run policy experiments on the savings rate, demographic transition, and technology growth, and confront the cross-country puzzles — Korean catch-up, African divergence, the post-1980 productivity slowdown — that

12 rounds Executive English, Español

Preview

About this simulation

Build the Solow growth model from scratch, calibrate it to Costaria (a fictional mid-income LATAM economy), run policy experiments on the savings rate, demographic transition, and technology growth, and confront the cross-country puzzles — Korean catch-up, African divergence, the post-1980 productivity slowdown — that motivate modern endogenous-growth and institutional theory.

Who it is for

An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.

How a session runs

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 12 rounds. In each one they submit their decisions and the simulation calculates the results.
  3. The simulation can be run in English, Español.
  4. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • Savings rate s (share of GDP invested)
  • Population growth n (per year)
  • Technology growth g (TFP, per year)

What participants track

What participants follow on screen as the rounds go by:

  • Policy levers — set for the next 5 years
  • GDP per capita — actual vs steady state
  • Per-capita growth rate, by period
  • Solow diagram: actual investment sk^α vs break-even (n+g+δ)k
  • Period log — parameters and outcomes

Subjects covered

Designed for courses in Macroeconomics.

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