Abstract
Goodwin's predator-prey model of economic growth and perpetual class struggle is extended to allow for (i) differential savings, (ii) the effects of productivity upon the real wage bargain, and (iii) induced technical change. When (iii) is introduced the perpetual conflict cycles are replaced by damped cycles, which illustrates the structural instability of Goodwin's model. However, if effects (i) and (ii) are relatively large, the extended model can generate structurally stable class struggle cycles. The existence of such robust limit cycles is established with the aid of the root-locus diagram and Hopf's bifurcation theorem.
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