INFLATION AND LABOUR CAPITAL DISTRIBUTION: THE VIABLE COMPROMISES

Hélène Clément-Pitiot and Patrick Saint-Pierre

Economics 21, 2014, issue 1, 10

Abstract: Our contribution aims to revisit the well known Goodwin’s model in macroeconomics by the light of set-valued analysis taking into account state and regulation constraints in a viability program. The model of Goodwin (1967) deals with dynamic interactions between employment and salary levels. It provides endogenous explanations of cyclical trends in dynamical economy. Viability methods enable investigating model properties and revealing appropriate regulation allowing the evolution to ffiulll some prescribed qualitative objective. Then, applying computational methods derived from the Viability Kernel Algorithm, one can stretch the traditional Goodwin model analysis up to the institutional framework of the economy including monetary and budgetary aspects of the regulation policy from the public authorities, namely the state government, the central bank and eventually the rivalry between the two boards thanks to dynamical games

Keywords: Goodwin model; viability kernel; regulation policy; viability of evolutions; budgetary and monetary regulation tools (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:dat:econ21:y:2014:i:1:p:10

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