Abstract
Following the Kolmogoroff approach to Volterra's equations, the paper investigates a generalized Goodwin growth cycle model. An investment function involving profit expectations is used together with an extended Phillips curve. The dynamical system is still of dimension two and is able to generate a stable limit cycle whose size and period depend on the sensitivity of prices to labor cost. The model overcomes the structural instability of Goodwin's original version. Therefore, from a qualitative as well as quantitative point of view, it may be a more satisfactory description of the cyclical growth process.
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