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A Goodwinian Model With Direct And Roundabout Returns To Scale (An Application To Italy)

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  • Alexander V. Ryzhenkov

Abstract

This paper re‐formulates and tests statistically a hypothetical law (HL) of capital accumulation that manifests itself in three scenarios for Italian economy. HL refines Verdoorn law and ‘Ricardian’ relationship between employment and returns; it generalizes neoclassical and Goodwinian models. Big cycles are not sustainable in inertia Scenario I. Lowering direct diseconomy of scale does not alter a non‐trivial stationary state in stabilization Scenario II. Weakening an inverse relation between employment ratio and growth rate of capital intensity raises stationary relative labour compensation without deteriorating profitability in stabilization Scenario III. Stationary states with zero relative labour compensation are not economically relevant.

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  • Alexander V. Ryzhenkov, 2009. "A Goodwinian Model With Direct And Roundabout Returns To Scale (An Application To Italy)," Metroeconomica, Wiley Blackwell, vol. 60(3), pages 343-399, July.
    • Handle: RePEc:bla:metroe:v:60:y:2009:i:3:p:343-399
    DOI: 10.1111/j.1467-999X.2008.00344.x
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    References listed on IDEAS

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    Cited by:

    1. Hiroaki Sasaki, 2013. "Cyclical growth in a Goodwin–Kalecki–Marx model," Journal of Economics, Springer, vol. 108(2), pages 145-171, March.
    2. Luciano Boggio, 2010. "On Increasing Returns To Scale. A Reply To Professor Ryzhenkov," Metroeconomica, Wiley Blackwell, vol. 61(4), pages 735-739, November.
    3. Sasaki, Hiroaki & Asada, Yasukuni, 2020. "Quantifying Goodwin Growth Cycles with Minimum Wage Shares," MPRA Paper 99926, University Library of Munich, Germany.
    4. Alexander V. Ryzhenkov, 2022. "Increasing returns and business cycles in a family of Goodwinian models with Leontiev technology," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-47, December.
    5. Matheus R. Grasselli & Aditya Maheshwari, 2018. "Testing a Goodwin model with general capital accumulation rate," Papers 1803.01536, arXiv.org.

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