examples/solow_swan_economic_growth/model.modelica


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model SolowSwan
    "Simple economic growth model"
    Real Y "total production";
    Real K "capital factor";
    Real L "labor factor";
    Real A "labor-augmentation factor";
    parameter Real L_0=1 "initial labor";
    parameter Real A_0=1 "initial labor augmentation";
    parameter Real alpha "elasticity of output with respect to capital (0 to 1)";
    parameter Real n "labor (population) growth rate";
    parameter Real g "augmentation growth rate";
    parameter Real delta "rate of capital deprecation";
    parameter Real c "consumption vs. investment fraction (0 to 1)";
equation
    Y = K^alpha * (A * L)^(1-alpha);
    L = L_0 * e^(n*t);
    A = A_0 * e^(g*t);
    der(K) = (1-c)*Y - delta*K;
end SolowSwan;