  We perform econometric tests on a modified Goodwin model where the capital
accumulation rate is constant but not necessarily equal to one as in the
original model (Goodwin, 1967). In addition to this modification, we find that
addressing the methodological and reporting issues in Harvie (2000) leads to
remarkably better results, with near perfect agreement between the estimates of
equilibrium employment rates and the corresponding empirical averages, as well
as significantly improved estimates of equilibrium wage shares. Despite its
simplicity and obvious limitations, the performance of the modified Goodwin
model implied by our results show that it can be used as a starting point for
more sophisticated models for endogenous growth cycles.
