A Growth Cycle
01 Jan 1982-pp 165-170
TL;DR: In this paper, a starkly schematised and hence quite unrealistic model of cycles in growth rates is presented, which seems to me to have better prospects than the more usual treatment of growth theory or of cycle theory separately or in combination.
Abstract: Presented here is a starkly schematised and hence quite unrealistic model of cycles in growth rates. This type of formulation now seems to me to have better prospects than the more usual treatment of growth theory or of cycle theory, separately or in combination. Many of the bits of reasoning are common to both, but in the present paper they are put together in a different way.
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TL;DR: In this paper, the authors study the evolution of the labor share in the OECD since 1970 and show that it is essentially related to the capital-output ratio and that this relationship is shifted by factors like the price of imported materials or the skill mix.
Abstract: In this paper we study the evolution of the labor share in the OECD since 1970. We show it is essentially related to the capital-output ratio; that this relationship is shifted by factors like the price of imported materials or the skill mix; and that discrepancies between the marginal product of labor and the real wage (due to, e.g., product market power, union bargaining, and labor adjustment costs) cause departures from it. We provide estimates of the model with panel data on 14 industries and 14 countries for 1973-93 and use them to compute the evolution of the wage gap in Germany and the US.
608 citations
TL;DR: The results show that modeling by reaction-diffusion equations is an appropriate tool for investigating fundamental mechanisms of complex spatiotemporal plankton dynamics, fractal properties of planktivorous fish school movements, and their interrelationships.
Abstract: Nonlinear dynamics and chaotic and complex systems constitute some of the most fascinating developments of late twentieth century mathematics and physics. The implications have changed our understanding of important phenomena in almost every field of science, including biology and ecology. This article investigates complexity and chaos in the spatiotemporal dynamics of aquatic ecosystems. The dynamics of these biological communities exhibit an interplay between processes acting on a scale from hundreds of meters to kilometers, controlled by biology, and processes acting on a scale from dozens to hundreds of kilometers, dominated by the heterogeneity of hydrophysical fields. We focus on how biological processes affect spatiotemporal pattern formation. Our results show that modeling by reaction-diffusion equations is an appropriate tool for investigating fundamental mechanisms of complex spatiotemporal plankton dynamics, fractal properties of planktivorous fish school movements, and their interrelationships.
441 citations
TL;DR: The JSTOR Archive as mentioned in this paper is a trusted digital repository providing for long-term preservation and access to leading academic journals and scholarly literature from around the world, including the Journal of Economic Perspectives.
Abstract: Stable URL:http://links.jstor.org/sici?sici=0895-3309%28200324%2917%3A1%3C199%3ARWHTTC%3E2.0.CO%3B2-2The Journal of Economic Perspectives is currently published by American Economic Association.Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available athttp://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtainedprior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content inthe JSTOR archive only for your personal, non-commercial use.Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained athttp://www.jstor.org/journals/aea.html.Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printedpage of such transmission.The JSTOR Archive is a trusted digital repository providing for long-term preservation and access to leading academicjournals and scholarly literature from around the world. The Archive is supported by libraries, scholarly societies, publishers,and foundations. It is an initiative of JSTOR, a not-for-profit organization with a mission to help the scholarly community takeadvantage of advances in technology. For more information regarding JSTOR, please contact support@jstor.org.http://www.jstor.orgThu Jun 21 12:47:44 2007
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TL;DR: This paper developed a simple macroeconomic model that shows that combining capital market imperfections together with unequal access to investment opportunities across individuals can generate endogenous and permanent euctuations in aggregate GDP, investment, and interest rates.
Abstract: This paper develops a simple macroeconomic model that shows that combining capital market imperfections together with unequal access to investment opportunities across individuals can generate endogenous and permanent euctuations in aggregate GDP, investment, and interest rates. Reducing inequality of access may be a necessary condition for macroeconomic stabilization. Moreover, countercyclical escal policies have a role to play: in our model savings are underutilized in slumps because of the limited debt capacity of potential investors. Therefore, the government should issue public debt during recessions in order to absorb those idle savings and enance investment subsidies or tax cuts for investors. The most important single fact about saving and investment activities is that in our industrial society they are generally done by different people and for different reasons. (. . .) For years there might tend to be too little investment, leading to deeation, losses, excess capacity and unemployment. For other years, there might tend to be too much investment, leading to periods of chronic ineation—unless prudent and proper public policies in the escal and monetary eelds are followed [Paul A. Samuelson, Economics 8th edition, 1970, pp. 196‐198].
435 citations
Cites methods from "A Growth Cycle"
...Here we show how our model can easily be extended in order to offer a micro-founded version of Goodwin’s [1967] model of growth cycles....
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TL;DR: In this article, Minsky's financial instability hypothesis interpretation of Keynes's General Theory is outlined and two stylized fact extensions are made to Goodwin's (1972) limit cycle model to incorporate the fundamentals of Minsky hypothesis.
Abstract: H. M. Minsky's financial instability hypothesis interpretation of Keynes's General Theory is outlined. Two stylized fact extensions are made to Goodwin's (1972) limit cycle model to incorporate the fundamentals of Minsky's hypothesis. The introduction of a 'real' finance sector converts Goodwin's stable system into a chaotic one, with the transition from stability to instability and breakdown determined by the level of interest rate and debt. A stylized government sector counterbalances capitalist tendencies towards euphoric investment and results in a cyclical but stable system. It is surmised that actual governments have developed away from this ideal of countercyclical behavior.
309 citations