Distributive cycles and endogenous technical change in a BoPC growth model
Marwil Dávila-Fernández and
Serena Sordi ()
Economic Modelling, 2019, vol. 77, issue C, 216-233
Our purpose in this paper is to expand Goodwin's (1967) distributive cycle model to an open economy framework in a way that incorporates the balance-of-payments constraint on growth. We do so by allowing technical change to be endogenous to the cyclical dynamics of the system and by adopting an independent investment function. We show that a Hopf-Bifurcation analysis establishes the possibility of persistent and bounded cyclical paths both for a 3D and a 4D extension of the model. Some numerical simulations are performed based on the analytical models developed. Motivational empirical evidence is also provided for Thirlwall's law using a sample of 16 OECD countries.
Keywords: Growth cycle; Goodwin; Thirlwall's law; Learning-by-doing; Distributive cycles; Hopf bifurcation (search for similar items in EconPapers)
JEL-codes: E12 E32 O40 (search for similar items in EconPapers)
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Working Paper: Distributive cycles and endogenous technical change in a BoPC growth model (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:77:y:2019:i:c:p:216-233
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