Question 3

Understanding the factors determining economic growth has been a major concern for many years.The Solow growth model and the endogenous growth models are two main theories tested and used in the growth literature.Discuss both these growth models, identifying the major model components, assumptions, primary tools, key insights and the models convergence prediction.You must discuss each of these in a separate paragraph for each theory. Note: read the article posted on moodle on growth theories.You discussed this in tutorials too.

Example:

Solow growth: introduce, define etc

Paragraph: major model components

Next paragraph: assumptions

Next paragraph: primary tools...and so on until convergence prediction.

Then start on endog theory....