# Chart for Solow Model

Hi Everybody,

I need to graph Solow model, though it’s not as easy task as I hoped for. I looked for excel charts in internet and there is a problem with every single one of them. I’ll try to explain my point.

per capita output function: y=k^{a}

k at time t = k at time t-1 + investment - d * k at time t, where d is depreciation rate: k(t) = k(t-1) + i - d*(k(t-1)

i is the function of y: i = y*s where s is the savings rate and is held constant

Now about the problem - everything is intertwined and function of each other - thus I have “circular reference problem” in excel. I don’t have truly independent variable as input. In sources I found in internet, they ignore the capital equation k(t) = k(t-1) + i - d*(k(t-1), which is independently is graphed and actual capital growth given for y calculation is different.

I hope I made the point as clear as possible.

I would appreciate your help!

# Study together. Pass together.

Join the world's largest online community of CFA, CAIA and FRM candidates.

Can you please super smart people solve this problem?