Cyclical Growth in a Goodwin-Kalecki-Marx Model

No 246, TERG Discussion Papers from Graduate School of Economics and Management, Tohoku University

Abstract: This paper presents a Kaleckian growth model that considers elements from Goodwin and Marx. The model has a system of differential equations for the rate of utilization, the profit share, and the rate of employment. We show that cyclical fluctuations occur depending on the sizes of the reserve-army effect and the reserve-army-creation effect. Moreover, we show that if the stable long-run equilibrium corresponds to the profit-led growth regime, an increase in the bargaining power of workers increases the rate of unemployment; on the other hand, if the equilibrium corresponds to the wage-led growth-regime, an increase in the bargaining power of workers decreases the rate of unemployment.

Pages: 32 pages
Date: 2009-08
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Citations: View citations in EconPapers (2)

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http://hdl.handle.net/10097/55396

Related works:
Journal Article: Cyclical growth in a Goodwin–Kalecki–Marx model (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:toh:tergaa:246

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