Epstein Secrets

o produce a simple Lotka-Volterra macroeconomic model. This basic model generates endogenous boom and bust business cycles of the sort described by Minsky and Austrian economists. From this model an exact formula for the Bowley ratio; the ratio of returns to labour to total returns, is derived. This f

on of the national income shares in the US, noting that the overall share is constant even though sector shares show long-term changes [Young 2010]. Gollin gives a very thorough survey of income shares in more than forty countries [Gollin 2002]. Figure 1.3.8 here [St Louis Fed 2004] We will come back

al unproductive. This then generates a downswing of declining wealth, consumption and wages. This is the normal cycle of capitalism as described by Minsky and the Austrians. Booms and busts are endogenous. Free markets are not inherently stable. Again, as with the income and company models it noticeab

ee-quarters and can be very stable, as discussed in section 1.3 above. Young gives a good discussion of the national income shares in the US, while Gollin gives a very thorough survey of income shares in more than forty countries [Young 2010, Gollin 2002]. In emerging economies 13 can be much lower, a

ge payments to rents. The macroeconomic models in section 4 above suggest that liquidity can be formed endogenously, in exactly the way proposed by Minsky. This suggests that, just as central banks are expected to control changes in the money supply caused by fractional reserve banking, it seems appro

FT 2011b FT/M 2010 Gabaix 2009 Gaffeo et al 2003 Gallegati et al 2006 gapminder Georgescu-Roegen 1971 Georgia Tech 2010 Glazer & Wark 2001 Gollin 2002 Gould & Tobochnik 2010 Goyenko et al 2009 Griffiths & Tenenbaum 2006 Guardian 2010 Harrison 2005 Harvie 2000 Hayek 1931 Hess & Holzhau