Modelling the Business Cycle Based on Marxian Reproduction Theory

The article presents a model of a business cycle in a capitalist economy based on Marxian theory of reproduction. It is a model of the Lotka-Volterra type which represents the cycle in the form of damped oscillations of the labour costs, the surplus value and the output as a result of the contradiction between the labour and the capital. To develop the model, the circulation of the capital value in the Departments of the social production as well as the turnover of the fictitious and the real capital were considered. An approach
to model the cycle in an open-economy is set forward. The model could be regarded as a step towards designing a neomarxian
analytical and forecasting framework for purposes of macroeconomic regulation.