Economic Growth: Analysis of Transition to Equilibrium State

The Solow model in discrete time is set with the existence condition of the unambiguous non-zero stationary attractor solution. The influence of the annual growth rate of employment, the share of annual capital disposal and the rate of accumulation for stationary solution are investigated. The lower and upper deviation estimates of capital endowment ratios from stationary value are considered. The transient time is considered as the time of initial displacement reduction. The lower and upper estimates of the transient time are obtained for the different initial values of the capital endowment ratios. The analysis of the influence of model parameters on the transient process time estimations is carried out. For the Solow model with the Cobb-Douglas production function with the trendless decreasing return of scale, these estimates do not depend on the rate of accumulation. The numerical values of estimated transient time are given for the feasible parameter values of the Cobb-Douglas production function model.