<p>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? </p>

<p>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? </p>

<p>Thanks! </p>

CC BY-SA 3.0
2016-10-18T21:34:22.480Z
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?
Giskard
CC BY-SA 3.0
2016-10-19T00:37:26.287Z
@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.
pc724
<macroeconomics><microeconomics><mathematical-economics><labor-economics>
Can the Goodwin Model of cyclical labor growth be applied in a micro context to specific industries?
pc724
# Can the Goodwin Model of cyclical labor growth be applied in a micro context to specific industries?

(Asked by: username_0 on 2016-10-18)

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!

**Tags:** macroeconomics, microeconomics, mathematical-economics, labor-economics
> **Comments:**
> **username_1**: 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?  
> **username_0**: @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.  

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## 0 answers

