hi amir, if the change K (I-D) is >0 does that mean we are to the left of the right of the steady state. So if the change in K is positive i assume that would mean we are investing more capital to make it to the steady state (meaning we are to the left of the steady state), if the change in K is negative does that mean we are losing too much in depreciation of our capital, so we reduce capital in order to reach the steady state (meaning we are to the right of the steady state)?
That’s correct James! Just paraphrase your wording as K will decrease if maintenance cost is greater than investment, we do not decrease k but k decreases as a consequence.
just making sure i have it right
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