The purpose of this paper is to illustrate the usefulness of Keynes' approach by modeling it using system dynamics. As this technique allows the researcher to place the analysis in time it is especially well suited to the task. It also allows us to see exactly which elements seem to create the...

This paper builds a system-dynamics model of the Mexican economy and tests several propositions regarding policy and income inequality. It concludes, among other things, that one of the most significant developments over the past twenty years has been the declining wage paid to those in the...