Introduction to Modern Economic Growth Notice that the equivalent of Theorem 2.6 is not true in discrete time, and this will be illustrated in Exercise 2.11 k(t) k(t) k(t) k* s f(k(t)) –(δ+g+n) k(t) Figure 2.9 Dynamics of the capital-labor ratio in the basic Solow model In view of these results, Proposition 2.5 immediately generalizes: Proposition 2.9 Suppose that Assumptions and hold, then the basic Solow growth model in continuous time with constant population growth and no technological change is globally asymptotically stable, and starting from any k (0) > 0, k (t) → k∗ Proof The proof of stability is now simpler and follows immediately from Theorem 2.6 by noting that whenever k < k ∗ , sf (k) − (n + δ) k > and whenever Ô k > k , sf (k) − (n + δ) k < Figure 2.9 shows the analysis of stability diagrammatically The figure plots the right hand side of (2.32) and makes it clear that whenever k < k ∗ , k˙ > and 73