New Books in Economics Verena Halsmayer on Managing Growth in Miniature: Solow’s Model as an Artifact
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Nov 24, 2025 Verena Halsmayer, a postdoctoral fellow at the University of Vienna and a historian of economics, dives deep into the Solow growth model in her award-winning book. She discusses how economists transitioned post-WWII, emphasizing the importance of technology in growth. Halsmayer explores models as artifacts shaping policy and teaching, and the ambiguous nature that allows diverse political interpretations. The conversation highlights the intertwined histories of economics and science, along with her ongoing work on alternative participatory planning.
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Modeling As Practice Not Just Ideas
- Verena Halsmayer reframes economists' knowledge as historically specific practices rather than just ideas.
- She studies modeling and measuring as concrete activities done with tools and cultures of work.
Solow Turns Technology Into The Growth Driver
- Solow's 1956 model framed growth as driven by capital, labor, and an external technological factor.
- It showed population and investment alone can't raise long-run growth rate; technology must.
Technology As The Residual
- In Solow's application, 'technology' became the residual after inputs were accounted for.
- The Solow residual (TFP) captured everything unexplained, including measurement errors and social factors.
