ABSTRACT
In his seminal growth-cycle contribution (Goodwin 1967), Goodwin did not really offer extensive justifications for the basic assumptions of his model except for a brief hint on the Marxian theory of capital accumulation. 1 To give an example: While it seems to be a plausible assumption to relate the rate of growth of real wages positively to the employment rate, there certainly is no automatic mechanism at work such that there will be an increase in real wages whenever the employment rate rises.
