Solution manual for advanced macroeconomics 4th edition by romer

... by examining the derivative (sk)/ It is possible to show that sk   sk  ln k (1)  For <  < 1, and for positive values of k, the sign of (sk)/ is determined by the sign of lnk For. .. worker through two channels First, by directly raising output but also by (for a given saving rate) increasing the resources devoted to capital accumulation and thereby raising the capital-labor ratio... falls initially by 3.5 percent and will eventually be percent higher than it would have been Thus it must change by 9.5 percent on the way to the balanced growth path It will therefore be equal