Search and Selection in the Goodwin Growth Model

Abstract

The Goodwin growth model is a particular dynamical system exhibiting limit cycle behaviour. I wish to add a measure of search and selection into the basic model by adapting one of the parameters of the model to be affected by an operator, such that the search process itself is a function of the relative slackness of the labour market summarised by the Phillips curve relationship modelled within the Goodwin model, and a new operator defined below, following Kauffman (1993) NK model of search and selection along fitness landscapes. The results of simulations show simply that the dynamics of the augmented Goodwin economy are essentially unchanged, though the search process itself is determined more by the macro-dynamics than the microeconomic conditions imposed on the actors in the system by the ruggedness of the landscape.

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About Stephen Kinsella

I teach economics at the <A HREF="http://www.ul.ie/">University of Limerick</A>, where I am a Junior Lecturer in the <A HREF="http://www.ul.ie/business/departments/ec/economics.shtml">Kemmy Business School</A>. This site is primarily for students at UL. You can <a href="mailto:stephen.kinsella@ul.ie">email me</a> if you have any questions.