Abstract
Using examples Hahn [9] clarified that the asymptotic stability of the steady state in the macro growth models does not extend to a world with many heterogeneous capital goods. Despite his contribution and those that followed, important questions remain as to whether the presented model has the dynamic causality and whether the alleged instability is of a more general nature. To date no definite conclusion is yet available. The purpose in this paper is to present a clear-cut view of the problem, and to provide a conclusive evidence that in general the steady state of the Hahn-type growth model has the saddlepoint property.
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