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Growth and Cycles as a Struggle: Lotka–Volterra, Goodwin and Phillips

In: Nonlinearities in Economics

Author

Listed:
  • Giuseppe Orlando

    (University of Bari, Department of Economics and Finance
    University of Camerino, School of Sciences and Technology)

  • Mario Sportelli

    (University of Bari, Department Mathematics)

Abstract

In this chapter, we describe growth and cycles in economics as a struggle between capitalists and workers. We first present the Phillips curve (which statistically relates unemployment with the rate of change of nominal wages) and then the Goodwin model. The latter reinterprets, in economical terms, the dynamics of biological prey–predator struggle as described by the Lotka–Volterra model. The interaction between the two species reminded Goodwin about the Marxian conflict of class. Goodwin’s model explains cycles in those terms and will be tested in Chap. 19 . The Kolmogorov generalization of the prey–predator model and further extensions of the Goodwin model conclude.

Suggested Citation

  • Giuseppe Orlando & Mario Sportelli, 2021. "Growth and Cycles as a Struggle: Lotka–Volterra, Goodwin and Phillips," Dynamic Modeling and Econometrics in Economics and Finance, in: Giuseppe Orlando & Alexander N. Pisarchik & Ruedi Stoop (ed.), Nonlinearities in Economics, chapter 0, pages 191-208, Springer.
    • Handle: RePEc:spr:dymchp:978-3-030-70982-2_14
    DOI: 10.1007/978-3-030-70982-2_14
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    References listed on IDEAS

    as
    1. Taylor, John B, 1979. "Staggered Wage Setting in a Macro Model," American Economic Review, American Economic Association, vol. 69(2), pages 108-113, May.
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