Goodwin Business Cycle Model: An application for Turkey

The analysis of business cycle is one of the important issues in economics. Systematic analyses on these cycles have begun with the Keynesian period. Among these analyses, Goodwin's Business Cycle Model has a special role. Goodwin's model employs Lotka-Volterra (predator-prey) model, a mathematical model in ecology, for analyzing income distribution dynamics between labor and capital in an economy. Besides, Goodwin asserts that the struggle between labor and capital for obtaining more national income has a cyclical character. In this study, it is explored that whether an income struggle between labor and capital is cyclical in the period of 1965 to 2015 in Turkey within the framework of Goodwin's model. Keywords: Business Cycle, Goodwin's Business Cycle Model, System Dynamics, NetLogo