Increasing returns and labor markets in a predator–prey model

Giovanni Dosi, Davide Usula and Maria Enrica Virgillito
Additional contact information
Davide Usula: Institute of Economics, Scuola Superiore Sant’Anna

Journal of Evolutionary Economics, 2024, vol. 34, issue 2, No 4, 375-402

Abstract: Abstract The purpose of this work is to study the joint interaction of three founding elements of modern capitalism, namely endogenous technical change, income distribution, and labor markets, within a low-dimensional nonlinear dynamic setup extending the Goodwin model. Going beyond the conservative structure typical of the predator–prey model, we insert an endogenous source of energy, namely a Kaldor–Verdoorn (KV) increasing returns specification, that feeds the dynamics of the system over the long run and in that incorporates a transition to an (anti)-dissipative framework. The qualitatively dynamics and ample array of topological structures reflect a wide range of Kaldorian stylized facts, as steady productivity growth and constant shares of income distribution. The intensity of learning regimes and wage sensitivity to unemployment allow to mimic some typical traits of both Competitive and Fordist regimes of accumulation, showing the relevance of the demand-side engine, represented by the KV law, within an overall supply-side framework. High degrees of learning regimes stabilize the system and bring it out of an oscillatory trap. Even under regimes characterized by low degrees of learning, wage rigidity is able to stabilize the business cycle fluctuations and exert a positive effect on productivity growth.

Keywords: Capitalist system; Kaldor–Verdoorn law; Wage rigidity; Dissipative complex systems (search for similar items in EconPapers)
JEL-codes: C61 C63 E11 E12 E24 E32 E37 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00191-024-00861-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Increasing returns and labour markets in a predator-prey model (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joevec:v:34:y:2024:i:2:d:10.1007_s00191-024-00861-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/191/PS2

DOI: 10.1007/s00191-024-00861-x

Access Statistics for this article

Journal of Evolutionary Economics is currently edited by Uwe Cantner, Elias Dinopoulos, Horst Hanusch and Luigi Orsenigo

More articles in Journal of Evolutionary Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().