What Is the Solow Growth Model?

American financial scientist Robert Higgins conducted in-depth research on corporate growth and financial issues, and in 1977 proposed a sustainable growth model. The sustainable growth model describes the relationship between the growth rate of a company under certain conditions, which is constrained by operating levels, financial resources, and policies. This model is an effective method for setting sales growth targets and has been widely used by many companies (such as HP, Boston Consulting). Higgins definition: Sustainable growth rate refers to the maximum rate that a company's sales can grow without exhausting financial resources.