# Harrod–Domar model

From Devec

The Harrod–Domar model is a long-run economic growth model.

## Contents

## Model assumptions

## Variables in the model

Name | Variable | Unit | Rival input? | Variable type | Notes |
---|---|---|---|---|---|

Output | Y |
Units of GDP (dollar?) | – | Endogenous | |

Physical capital (capital stock) | K |
Yes | Endogenous | Physical capital includes things like machines, computers, buildings, etc. | |

Consumption | C |
||||

Investment | I |
||||

Amount saved | S |
||||

Growth of X |
|||||

Depreciation (rate?) | δ, d, D |
Unitless | |||

Capital per worker | k = K/L |
Endogenous | |||

Fraction saved | s |
Unitless | |||

Time | t |
Time, e.g. years | |||

Production function | F |

## Mathematical formalism

### Discrete

### Continuous

## History

## Commentary

Easterly in *The Elusive Quest for Growth* criticizes this model.

## See also

## External links

- Harrod–Domar model (Wikipedia)