Steady State

Macro

When $sy=s{k}^{\alpha }=\delta k$ , which means $\Delta k=0$, that means the investment is just enough to cover the depreciation. The Steady State occur. We could also say $\dot{K}=0$ (from ECON4004 Advanced Macroeconomics). The meaning is the same since $\dot{K}=\frac{\delta K_t}{\delta t}$

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