Robert M. Solow

DEFINITION of 'Robert M. Solow '

Robert M. Solow is an American economist and recipient of the John Bates Clark Medal (1961) and the Nobel Memorial Prize in Economic Sciences (1987). He is best known for his efforts on the theory of economic growth. As a student at Harvard, he become research assistant to Wassily Leontief, the economist who introduced the input-output analysis method in economics.

BREAKING DOWN 'Robert M. Solow '

Robert Solow's most well-known economic contribution was the Solow-Swan Neo-Classical Growth Model - an exogenous growth model whereby Solow separated factors in economic growth into increases in inputs (including labor and capital) and technical progress. Other important works include Solow's economic growth model based on different types of capital. Solow considered new capital more productive than old, or vintage, capital.

RELATED TERMS
  1. Solow Residual

    A measure of the empirical productivity growth in an industry ...
  2. John Bates Clark Medal

    An award issued to an American economist under the age of 40 ...
  3. Wassily Leontief

    A Nobel Prize-winning American economist and professor. Wassily ...
  4. The Clark Medal

    An informal name for the John Bates Clark Medal, which is a prize ...
  5. Input-Output Analysis

    Input-output analysis is an economics term that refers to the ...
  6. John Bates Clark

    An American Neoclassical economist renowned for his development ...
Related Articles
  1. Markets

    Nobel Winners Are Economic Prizes

    Before you try to profit from their theories, you should learn about the creators themselves.
  2. Markets

    Does a Shorter Work Week Lead to Greater Productivity?

    While technology has significantly increased labor productivity, institutional changes, such as a shorter work week, could also be very productive.
  3. Markets

    Why Can't Economists Agree?

    There are many reasons why economists can be given the same data and come up with entirely different conclusions.
  4. Markets

    The Difference Between Finance And Economics

    Learn the differences between these closely related disciplines and how they inform and influence each other.
  5. Markets

    Economic Growth

    Economic growth happens when the market value of the goods and services in an economy increase in one time period as compared to a prior time period.
  6. Markets

    Is Infinite Economic Growth on a Finite Planet Possible?

    While the finite nature of Earth's resources limits the direction of economic growth, it does not mean that infinite economic growth is impossible.
  7. ETFs & Mutual Funds

    Russell Clark and 3 Reasons Why His Horseman Global Fund Has Outperformed

    Discover why Russell Clark's Horseman Global Fund has outperformed in 2015 and 2016. His bearish bets on certain sectors have paid off handsomely.
  8. Markets

    Macroeconomics: Economic Performance and Growth

    By Stephen Simpson Income is one of the most significant factors in measuring economic performance, and gross domestic product (GDP) is the most commonly used measure of a country's economic ...
  9. Markets

    The History Of Economic Thought

    Economics is a vital part of every day life. Discover the major players who shaped its development.
  10. Markets

    How A Country's GDP Relates To Its Gold Medal Count

    Data shows that countries that are winning a smaller percentage of gold medals are seeing their share of the worldwide GDP decrease as well.
RELATED FAQS
  1. Why are microeconomic models different in the short run than the long run

    Find out why short-run and long-run microeconomic models treat production, costs and variable change using different given ... Read Answer >>
  2. How does the neoclassical growth theory predict real GDP?

    Understand what neoclassical growth theory is and how the ideology come about. Learn how the neoclassical growth theory predict ... Read Answer >>
  3. Is economics a science?

    Learn how economics fits into the category of social sciences, and discover the arguments critics make against this classification. Read Answer >>
  4. Why do economists build assumptions into their economic models?

    Find out why economists use unrealistic assumptions in their models to apply a version of the scientific method and make ... Read Answer >>
  5. What are the best measurements of economic growth

    Learn how economists and statisticians track economic growth and why GDP might not be the best measurement of real economic ... Read Answer >>
  6. How do different economic schools of thought treat the factors of production?

    Read about how different schools of economic thought treat the factors of production, both in terms of ownership and macroeconomic ... Read Answer >>
Hot Definitions
  1. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  2. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  4. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
  6. Security

    A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship ...
Trading Center