In this video I introduce the Solow growth model and show how to solve for the steady state. General Instructions.Solow sets up a mathematical model of long-run economic growth. He assumes full employment of capital and labor. If one prefers to put I! There's a simple formula: Determine your cost basis. Your cost basis for the asset is typically the purchase price plus any commissions or fees you pay. The model also incor-. 76. Common stock represents the basic ownership interest in the reporting entity. It is the residual corporate interest that bears the ultimate risk of loss,