A non-linear Keynesian Goodwin-type endogenous model of the cycle: Bayesian evidence for the USA

Theodore Mariolis, Konstantinos N. Konstantakis, Panayotis G. Michaelides, Efthymios G. Tsionas
2018 Studies in Nonlinear Dynamics & Econometrics  
This paper incorporates the so-called Bhaduri-Marglin accumulation function in Goodwin's original growth cycle model and econometrically estimates the proposed model for the case of the US economy in the time period 1960–2012, using a modern Bayesian sequential Monte Carlo method. Based on our findings, the US economy follows an exhilarationist regime throughout our investigation period with the sole exception of an underconsumption regime for the time period 1974–1978. In general, the results
more » ... neral, the results suggest that the proposed approach is an appropriate vehicle for expanding and improving traditional Goodwin-type models.
doi:10.1515/snde-2016-0137 fatcat:n2znjdvjivajnbputqs25tvlyu