Solow, Robert M.

▪ American economist

in full  Robert Merton Solow 

born August 23, 1924, Brooklyn, New York, U.S.

      American economist who was awarded the 1987 Nobel Prize for Economics for his important contributions to theories of economic growth.

      Solow received his B.A. (1947), M.A. (1949), and Ph.D. (1951) from Harvard University. He began teaching economics at the Massachusetts Institute of Technology in 1949 and became a full professor there in 1958. He also served on the Council of Economic Advisers in 1961–62 and was a consultant to that body from 1962 to 1968.

      In the 1950s Solow developed a mathematical model illustrating how various factors can contribute to sustained national economic growth. Contrary to traditional economic thinking, he showed that advances in the rate of technological progress do more to boost economic growth than do capital accumulation and labour increases.

      In his 1957 article “Technical Change and the Aggregate Production Function,” Solow observed that about half of economic growth cannot be accounted for by increases in capital and labour. He attributed this unaccounted-for portion—now called the “Solow residual”—to technological innovation. From the 1960s on, Solow's studies helped persuade governments to channel their funds into technological research and development to spur economic growth. A Keynesian (Keynesian economics), Solow has been a witty critic of economists ranging from interventionists such as John Kenneth Galbraith (Galbraith, John Kenneth) to free marketers such as Milton Friedman (Friedman, Milton).

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