Are There Goodwin Employment-Distribution Cycles? International Empirical Evidence

Cuadernos de Economía, Vol. 29, No. 53, 2010

29 Pages Posted: 20 Jan 2011

See all articles by Mario García Molina

Mario García Molina

National University of Colombia - Department of Economics

Eleonora Herrera

Universidad Antonio Nariño

Date Written: December 30, 2010

Abstract

Goodwin’s predator-prey model predicts clockwise cycles in the employment–distribution space. Qualitative evidence is provided in favour of nonlinear dynamic behaviour for a sample of 67 countries, some of which have cycles similar to those predicted by the model. Predicted centres lie outside actual circles. The kind of cycle (clockwise, counter clockwise or atypical) appears to be related to the kind of capitalism of the country. Countries with Market or European capitalism, as well as transition economies, do not tend to have demand cycles; developing countries with a Mediterranean capitalism do not tend to have Goodwin cycles.

Keywords: predator-prey model, non-linear dynamic behaviour, demand cycles, growth cycles.

JEL Classification: C10, E32, E19, O47

Suggested Citation

García Molina, Mario and Herrera, Eleonora, Are There Goodwin Employment-Distribution Cycles? International Empirical Evidence (December 30, 2010). Cuadernos de Economía, Vol. 29, No. 53, 2010. Available at SSRN: https://ssrn.com/abstract=1742872

Mario García Molina (Contact Author)

National University of Colombia - Department of Economics ( email )

Carrera 30 Calle 45 Ciudad Universitaria
Bogotá
Colombia

HOME PAGE: http://www.unal.edu.co

Eleonora Herrera

Universidad Antonio Nariño ( email )

Calle 58A No. 37-94 Of. 202 E
Bogotá, Cundinamarca
Colombia

HOME PAGE: http://www.uan.edu.co

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