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I have been doing a bit of research into the Goodwin Model (1967), which generates cycles of economic activity. I understand that this is mostly used in macroeconomics. However, I am curious if this predator-prey style model can adequately model the dynamic between workers share if output and their employment levels at the level of an industry versus the economy as a whole?

I've done some preliminary literature searches to see if it can be applied in a micro, rather than macro context, but have not found anything on this. Does anyone know if this is feasible? If not, can someone point me in the proper direction of a micro model which might do something similar?

Thanks!

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  • $\begingroup$ Micro assumes rational self-interested agents whereas in Goodwin you just have a process without any agents. What do you mean by applying the Goodwin model in a micro context? $\endgroup$ – Giskard Oct 18 '16 at 21:34
  • $\begingroup$ @denesp maybe I'm thinking about this wrong, but I usually thin of something at the industry level as being a micro related topic (something within the realm of IO). Perhaps, when looking at dynamics at the industry level, I don't need to assume self-interested rational agents, but I don't know if that's the case. Frankly, I'm coming at this from a mathematical modeling perspective. I just want to make sure I'm doing something that doesn't violate anything major within economics. $\endgroup$ – pc724 Oct 19 '16 at 0:37

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