Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305482 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 2024-7
Publisher: 
University of Massachusetts, Department of Economics, Amherst, MA
Abstract: 
I discuss some theoretical and empirical points about the Goodwin model. First, I offer a simple proof that solution trajectories around the stable critical point in the Goodwin model are closed orbits but not limit cycles. Moreover, in a neighborhood of the stable critical point, the closed orbits are ellipses. Second, I compare the predictions of the Goodwin model with patterns observed in actual annual data for the U.S. economy for the period 1950-2019. I find that the predictions of the model regarding three key aspects of cycles-the amplitude, time period and the direction of motion-are fully or partially at variance with observed data.
Subjects: 
Goodwin model
closed orbit
JEL: 
B51
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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