Hélène ClÉment Pitiot, Patrick Saint Pierre
Inflation and Labour Capital Distribution: the Viable Compromises
Summary:
Our contribution aims to revisit the well known Goodwin’s model in macroe-conomics by the light of set-valued analysis taking into account state and regulation constraints in a viability program. The model of Goodwin (1967) deals with dynamic in¬teractions between employment and salary levels. It provides endogenous explanations of cyclical trends in dynamical economy. Viability methods enable investigating model properties and revealing appropriate regulation allowing the evolution to ful;ll some pre¬scribed qualitative objective. Then, applying computational methods derived from the Viability Kernel Algorithm, one can stretch the traditional Goodwin model analysis up to the institutional framework of the economy including monetary and budgetary aspects of the regulation policy from the public authorities, namely the state government, the cen¬tral bank and eventually the rivalry between the two boards thanks to dynamical games.
