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Animal Spirits and the Goodwin Pattern

Mark Setterfield & George Wheaton

Metroeconomica: international review of economics2025https://doi.org/10.1111/meca.12506article
AJG 1ABDC B
Weight
0.37

What the paper says

ABSTRACT The Goodwin pattern is an established stylized fact of capitalist macrodynamics. Existing models typically assume profit‐led real‐sector dynamics and a ‘reserve army’ mechanism in order to reproduce this pattern. We extend an animal‐spirits‐driven business cycle model, in which the demand regime is wage‐led, by adding a reserve army effect determining real wage dynamics. We construct an agent‐based simulation of the model, showing that we are able to reproduce the Goodwin pattern. Our results add to the literature suggesting that the Goodwin pattern can arise from various macrodynamic ensembles—including some that feature wage‐led real sectors.

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https://doi.org/https://doi.org/10.1111/meca.12506

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@article{mark2025,
  title        = {{Animal Spirits and the Goodwin Pattern}},
  author       = {Mark Setterfield & George Wheaton},
  journal      = {Metroeconomica: international review of economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/meca.12506},
}

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Animal Spirits and the Goodwin Pattern

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.