Rodousakis, Nikolaos (2010): Testing Goodwin’s Growth Cycle Disaggregated Models: Evidence from the InputOutput Table of the Greek Economy for the Year 1988.

PDF
MPRA_paper_24171.pdf Download (241Kb)  Preview 
Abstract
This paper tests empirically the wellknown Goodwin’s ‘growth cycle’ disaggregated models, using data from the symmetric inputoutput table of the Greek economy for the year 1988. It is found that from qualitative as well as quantitative point of view, both models are not adequate to describe the longrun workers’ shareemployment rate trajectories of the Greek economy. However, in the mediumrun analysis the evidence presented here are more encouraging: at qualitative level, one of the two Goodwin’s models is found to be adequate to describe the dynamic behavior of the workers’ share and employment rate.
Item Type:  MPRA Paper 

Original Title:  Testing Goodwin’s Growth Cycle Disaggregated Models: Evidence from the InputOutput Table of the Greek Economy for the Year 1988 
Language:  English 
Keywords:  Business cycles; Disaggregated models; Inputoutput tables; Principal coordinates 
Subjects:  E  Macroeconomics and Monetary Economics > E3  Prices, Business Fluctuations, and Cycles > E32  Business Fluctuations; Cycles D  Microeconomics > D5  General Equilibrium and Disequilibrium > D57  InputOutput Tables and Analysis E  Macroeconomics and Monetary Economics > E2  Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E24  Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital C  Mathematical and Quantitative Methods > C6  Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C67  InputOutput Models 
Item ID:  24171 
Depositing User:  Nikolaos Rodousakis 
Date Deposited:  31. Jul 2010 01:21 
Last Modified:  13. Feb 2013 11:18 
References:  [1] A. B. Atkinson, The timescale of economic models: how long is the long run?, The Review of Economic Studies 36 (1969) 137152. [2] M. Desai, Econometric models of the share of wages in national income, U.K. 18551965, in: R. Goodwin, M. Krüger, A. Vercelli (Eds.), Nonlinear Models of Fluctuating Growth, Springer, Berlin, 1984, pp. 253277. [3] P. Flaschel , G. Groh, The classical growth cycle: reformulation, simulation and some facts, Economic Notes 24 (1995) 293326. [4] P. Flaschel , G. Groh, G. Kauermann, T. Teuber, The classical growth cycle after fifteen years of new observations, in: P. Flaschel and M. Landesmann (Eds.), Mathematical Economics and the Dynamics of Capitalism, Routledge, London, 2009, pp. 6977. [5] R.M. Goodwin, A growth cycle, in: C.H. Feinstein (Ed.), Socialism, Capitalism and Economic Growth: Essays Presented to Maurice Dobb, Cambridge University Press, London, 1967, pp. 5458. [6] R.M. Goodwin, Use of normalized general coordinates in linear value and distribution theory, in: K.R. Polenske and J.V. Skolka (Eds), Advances in InputOutput Analysis, Proceedings of the Sixth International Conference on InputOutput Techniques, Ballinger, Cambridge, 1976, pp. 581602. [7] R.M. Goodwin, A note on wages, profits and fluctuating growth rates, Cambridge Journal of Economics 7 (1983) 3059. [8] R.M. Goodwin, Essays in Linear Economic Structures, Macmillan, London, 1983. [9] R.M. Goodwin, Disaggregated models of fluctuating rowth, in: R.M. Goodwin, M. Krügerm, A. Vercelli (Eds.), Nonlinear models of fluctuating growth, Springer, Berlin, 1984, pp. 6772. [10] R.M. Goodwin, Swinging along the turnpike with von Neumann and Sraffa, Cambridge Journal of Economics 10 (1986) 21124. [11] R.M. Goodwin, Swinging along the Autostrada: Cyclical Fluctuations along the von Neumann ray, in: M. Dore, S. Chakravarty, R. Goodwin (Eds), John von Neumann and Moderns Economics, Clarendon Press, Oxford, 1989, pp. 125140. [12] R. M. Goodwin, L. F. Punzo, The Dynamics of a Capitalist Economy. A MultiSectoral Appoach, Polity Press, Cambridge, 1987. [13] D. Harvie, Testing Goodwin: growth cycles in ten OECD countries, Cambridge Journal of Economics 24 (2000) 349376. [14] H.D. Kurz, N, Salvadori, Theory of Production. A Long  Period Analysis, Cambridge University Press, Cambridge, 1995. [15] T. Mariolis, N., Rodousakis, L. Tsoulfidis, The rate of profit in the greek economy 19881997. An inputoutput analysis, Archives of Economic History 2 (2006) 177190. [16] C. Nikiforos, Employment profitability cycles in the economy of the United States: an empirical point of view, Political Economy 6 (2000) 137160. [17] OECD Department of Economics and Statistics publications 1982, 1992, 1996, 2009, National Accounts, Paris, OECD. [18] OECD Department of Economics and Statistics, 1968, 1975, 1994, 2009, Labour Force Statistics Paris, OECD. [19] N. Rodousakis, The ProfitWage Rate in the Greek Economy 19881997. An InputOutput Analysis (in Greek), mimeo, 2006. [20] N. Rodousakis, Goodwin’s LotkaVolterra model in disaggregative form: a note, available at http://mpra.ub.unimuenchen.de/22975/, 2010. [21] R. Solow, Goodwin’s growth cycle, in: K. Velupillai (Ed.), Nonlinear and Multisectoral Macrodynamics, Macmillan, London, 1990. [22] L. Tsoulfidis, T. Mariolis, Labour values, prices of production and the effects of income distribution: evidence from the Greek economy, Economic Systems Research 19 (2007) 425437. 
URI:  http://mpra.ub.unimuenchen.de/id/eprint/24171 