ISSN: 2222-6990
Open access
The Solow growth model assumes that labor force grows exponentially. That is not a realistic assumption. In generalized logistic equations that describes more accurately population growth. Economic growth is not a smooth process. Real GDP has fluctuations in the growth rate. We call these fluctuations business cycles. Business cycle theory came about from the failures of classical economics in being able to illuminate on the causes of the Great Depression. The logistic growth model to explain changes in population growth rates are not. In this paper a new analysis of the population growth rate in the frequency space is described with mathematical logic and economic reasoning, so that, firstly, to a higher level of capital per capita, or at least equal to the Solow growth model reaches Second, the limits of saturation (Carrying-Capacity) is not, and ultimately, population growth rates have an impact on long-term per capita amounts. The initial classic assumption is changed in this article based on the available frequencies in the population growth equation.
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