Goodwin Cycles, Distributional Conflict, and Productivity Growth

Armon Rezai

Oct 10

Written By SCEPA

WORKING PAPER

(353 KB)

A combination of an investment-driven macroeconomy and a conflictdetermined income distribution gives cyclical behavior.

Models of wage-price inflation can be nested in the Goodwinian tradition. Endogenous technical change has ambiguous effects on equilibrium: Kaldor-Verdoorn effects increase the wage share’s responsiveness to changes in output, while labor-saving technical change reduces it.

working paper

SCEPA

Goodwin Cycles, Distributional Conflict, and Productivity Growth

Political Economy and General Equilibrium Analysis in an Open Economy

Trade Expansion and Employment Generation

SCEPA is part of the Economics Department at The New School for Social Research