Matheus R. Grasselli, Aditya Maheshwari
arXiv 5 Mar 2018 · Econometrics · publishedMetroeconomica (2018) · 50 citations (OpenAlex)
arXiv:1803.01536 · PDF · DOI · OpenAlex · Extracted main text
We perform econometric tests on a modified Goodwin model where the capital accumulation rate is constant but not necessarily equal to one as in the original model (Goodwin, 1967). In addition to this modification, we find that addressing the methodological and reporting issues in Harvie (2000) leads to remarkably better results, with near perfect agreement between the estimates of equilibrium employment rates and the corresponding empirical averages, as well as significantly improved estimates of equilibrium wage shares. Despite its simplicity and obvious limitations, the performance of the modified Goodwin model implied by our results show that it can be used as a starting point for more sophisticated models for endogenous growth cycles.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Harvie, D (2000) Testing Goodwin: Growth cycles in ten OECD countries | 1.000 | 48 | 6 | 100% |
| 2 | Goodwin, R.M (1967) A growth cycle | 0.928 | 4 | 3 | 100% |
| 3 | Grasselli, M.R. and Maheshwari, A (2017) A comment on `Testing Goodwin: growth cycles in ten OECD countries' self | 0.843 | 3 | 3 | 100% |
| 4 | Pesaran, M.H., Shin, Y., and Smith, R.J (2001) Bounds testing approaches to the analysis of level relationships | 0.585 | 3 | 1 | 100% |
| 5 | Desai, M (1984) An econometric model of the share of wages in national income: UK 1855–1965 | 0.511 | 2 | 1 | 100% |
| 6 | Keen, S (1995) Financial Instability Hypothesis | 0.511 | 2 | 1 | 100% |
| 7 | Mohun, S. and Veneziani, R (2006) Goodwin cycles and the U.S. economy, 1948-2004 | 0.511 | 2 | 1 | 100% |
| 8 | Asada, T (2006) Stabilization policy in a Keynes-Goodwin model with debt accumulation | 0.405 | 1 | 1 | 100% |
| 9 | Atkinson, A.B (1969) The timescale of economic models: How long is the long run? | 0.405 | 1 | 1 | 100% |
| 10 | Costa Lima, B., Grasselli, M., Wang, X.S., and Wu, J (2014) Destabilizing a stable crisis: Employment persistence and government intervention in macroeconomics | 0.405 | 1 | 1 | 100% |
Showing the top 10 of 30 scored citations.