Distributive cycles and endogenous technical change in a BoPC growth model

C-Tier
Journal: Economic Modeling
Year: 2019
Volume: 77
Issue: C
Pages: 216-233

Authors (2)

Dávila-Fernández, Marwil J. (not in RePEc) Sordi, Serena (Università degli Studi di Sien...)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:eee:ecmode:v:77:y:2019:i:c:p:216-233
Journal Field
General
Author Count
2
Added to Database
2026-01-25