19-9 The Solow (neoclassical)growth model ·Assume labour grows at a constant rate n constant savings ratio s -capital per worker is k;this is constant in the steady state adding more capital per worker increases output per worker (v) but with diminishing returns Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITYEconomics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 19-9 The Solow (neoclassical) growth model • Assume – labour grows at a constant rate n – constant savings ratio s – capital per worker is k; this is constant in the steady state – adding more capital per worker increases output per worker (y) – but with diminishing returns