On the convergence and the steady state in a delayed Solow model

Abstract

The Solow-Swan model is analyzed with constant population growth rate and fix delay in the production process and in the depreciation. The linear stability of the trivial equilibrium and the steady state is investigated via stability charts after the identification of the effect of the delay on the level of the steady state. After that, the rate of convergence is approximated close to the steady state with the help of the estimation of the characteristic exponent with the largest real part. The identity of the convergence of the capital and the output in per capita is proven in the presence of delay too.