Increasing returns and business cycles in a family of Goodwinian models with Leontiev technology

Abstract The main purpose of this paper is to build a family tutorial Goodwinian (essentially Marxist) models capital accumulation through industrial cycles that are less complicated than the author’s extended capitalist reproduction in USA already published. subordinate advance refinement these from standard “neoclassical” assumptions distort generic structures determining perpetual disequilibrium aggregate social capital. ascending abstract concrete applies notion twofold nature production as creation use value and labour (prioritizing surplus value). This approach reveals substantial facets endogenous increasing returns technological progress induced by relations. A three-dimensional model L-1, containing greed feedback loops, reflects destabilizing cooperation stabilizing competition investors. Monopoly implements proportional derivative control over rate. growth rate output per worker directly depends on rates intensity employment ratio technical function, whereas capital-output constant. Oscillations imitating endogenous. recession (mild crisis) manifestation relative absolute over-accumulation knife-edge limit cycle maintains with Kondratiev duration; more solid period about 7.5 years upholds business without reduced net output. These result subsequent supercritical Andronov–Hopf bifurcations. transformation into gives credit raising status auxiliary L-1 level (phase) variable four-dimensional L-2. mechanization (automation) function mirrors progress. L-2 embraces new 11 intensive loops involving ratio. Proportional monopoly taken account. Pair bifurcations birth two cycles. second remote analogue for Kuznets 18 years; first 7 declining outright crisis. Besides capital, specific positive negative required crises Long-term enhancement profit lowering targeted domestic diminishing output-capital substantiated analytically validated computer simulations. gained insights highlight caveats hastily policy recommendations.