<p>The following graph shows a point at which the total amount of depreciation is greater than savings. This <em>decreases</em> the amount of capital per effective worker, over time, shown by the arrow pointing downwards and to the left.</p>

<p><a href="https://i.sstatic.net/IntDM.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/IntDM.png" alt="Solow growth with depreciation higher than savings"></a></p>

CC BY-SA 4.0
2019-03-09T07:05:33.533Z
2019-03-09T07:05:33.533Z
ahorn
<p>At first, I was confused by how y keeps increasing after depreciation exceeds savings, then I finally found what was truly bothering me. The fact that when depreciation exceeds savings, capital per worker should be negatively affected whereas, in reality, it keeps increasing along the x-axis. </p>

<p>Help!</p>

<macroeconomics><mathematical-economics><economic-growth><solow>
Here's a question about the solow model
Max Liu
# Here's a question about the solow model

(Asked by: username_0 on 2019-03-09)

At first, I was confused by how y keeps increasing after depreciation exceeds savings, then I finally found what was truly bothering me. The fact that when depreciation exceeds savings, capital per worker should be negatively affected whereas, in reality, it keeps increasing along the x-axis.

Help!

**Tags:** macroeconomics, mathematical-economics, economic-growth, solow


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## 1 answers

### Answer by username_1 on 2019-03-09. Score: 2

The following graph shows a point at which the total amount of depreciation is greater than savings. This *decreases* the amount of capital per effective worker, over time, shown by the arrow pointing downwards and to the left.

[![Solow growth with depreciation higher than savings](https://i.sstatic.net/IntDM.png)](https://i.sstatic.net/IntDM.png)


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