Distributive cycles and endogenous technical change in a BoPC growth model
Marwil Dávila-Fernández and
Serena Sordi ()
Department of Economics University of Siena from Department of Economics, University of Siena
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 boundedcyclical 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 and the respective adjustment mechanism using a sample of 17 OECD countries.
Keywords: Growth cycle; Goodwin; Thirlwall?s law; Kaldor-Verdoorn; Distributive cycles; Hopf bifurcation. (search for similar items in EconPapers)
JEL-codes: E12 E32 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
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Journal Article: Distributive cycles and endogenous technical change in a BoPC growth model (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:760
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