ANALOGY BETWEEN NEOCLASSICAL GROWTH MODEL OF ROBERT SOLOW AND MOLECULAR DYNAMICS PERMITS A NEW PATHWAY ON GOODS-IN-PROCESS

Abstract

In the present study, Robert Solow’s neoclassical growth model is extended and is shown to have resemblances with molecular dynamics. Here the labor force growth rate is comparable with 1^st order kinetics. The natural rate of Solow due to involvement of technical progress is comparable to concurrent reaction which indicates that under competitive situation technical made product is more advanced than labor made product. The concurrent production system helps to develop a new system of production (sequential type). Mathematically the status of the labor force before the commencement of technical progress per unit volume of definite output is shown which is critically analyzed and the condition for maximization is found out.