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Quantitative Evidence of Goodwins Non Linear Growth Cycles

Author

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  • Mario Garcia Molina
  • Alba Avila
  • Ibrahim Massy

Abstract

The article searches for quantitative evidence in favor of an extended version of Goodwin´s predator-prey model of endogenous distribution-employment cycles for 16 countries. The model is extended to include several harmonics in both series. The model fits all the observations both within sample and out of sample for half of the countries, with a 10% error, and for 4 countries with a 5% error. This suggests that the model may be useful in empirical work.

Suggested Citation

  • Mario Garcia Molina & Alba Avila & Ibrahim Massy, 2010. "Quantitative Evidence of Goodwins Non Linear Growth Cycles," Documentos de Trabajo, Escuela de Economía 7465, Universidad Nacional de Colombia, FCE, CID.
    • Handle: RePEc:col:000178:007465
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    File URL: http://fce.unal.edu.co/centro-editorial/docs/escuela-de-economia/15-quantitative-evidence-of-goodwin-s-non-linear-growth-cycles
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    References listed on IDEAS

    as
    1. Diamond, Peter A, 1982. "Aggregate Demand Management in Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 881-894, October.
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    Cited by:

    1. Plushchevskaya, Y., 2017. "A Basic Neomarxist Model of Economic Fluctuations," Journal of the New Economic Association, New Economic Association, vol. 35(3), pages 53-69.
    2. Matheus R. Grasselli & Aditya Maheshwari, 2018. "Testing a Goodwin model with general capital accumulation rate," Papers 1803.01536, arXiv.org.

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    More about this item

    Keywords

    Predator - prey model; Non - linear dynamic behavior; Demand cycles; Employment; Distribution.;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E19 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Other
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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