➤ Is the steady state stable and how fast does the system converge?
Yes. With a concave production function and positive depreciation the Solow steady state is typically stable. Convergence speed depends on capital share and break-even investment. For Cobb–Douglas f(k)=k^α the continuous-time speed approximates (1−α)(n+g+δ). Larger δ, n, or g usually increase the speed of adjustment toward k*.
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