Abstract for: A System Dynamics Approach to the Bhaduri-Marglin Model
This paper starts from the observation that the global financial and economic crisis cannot be explained by mainstream neoclassical models. There is a need to promote the development of macroeconomic models that put emphasis on the demand side. A promising starting point for such a development is the Bhaduri-Marglin model. A drawback of this model is the lack of dynamics. As the first part of a more comprehensive research program this paper proposes a system dynamics approach to the Bhaduri-Marglin model which yields additional insights into this model.