Economic growth and economic development 135

Introduction to Modern Economic Growth h k=0 h=0 h* k* k Figure 3.1 Steady-state equilibrium in the Solow model with human capital Similarly, defining fh ≡ ∂f/∂h and applying the implicit function theorem to the h˙ = locus, (3.15), we have (3.17) ¯ sh fk (k ∗ , h∗ ) dh ¯¯ = dk ¯h=0 (δ h + g + n) − sh fh (k∗ , h∗ ) ˙ With the same argument as that used for (3.16), this expression is also strictly positive 121