Goodwin’s Early Macrodynamic Models: A Singular Post-WWII Analysis of Shocks, Irregularities and Innovations

This article examines the evolution of Richard Goodwin’s early works, focusing on his repeated attempts to formalize Schumpeterian economic ideas. Drawing from his background in physics, the twentieth-century American macroeconomist developed several models over a short period of time to account for economic irregularities, innovations and instability. By analyzing these models, this paper aims to shed light on what Goodwin sought to achieve and how, in particular, he managed to incorporate shocks into his models. Ultimately, this research demonstrates how Goodwin’s seemingly distinct lines of inquiry are nonetheless underpinned by a cohesive worldview.