Capital-labor conflict in the Harrodian model

This study aims to consider the effect of capital-labor conflict in the Harrodian model. For this purpose, we incorporate a Bhaduri-Marglin-type investment function, reserve army effect, and technological change in the Harrodian model. Using this model, we find that not only both the reserve army effect and a Bhaduri-Marglin-type investment function but also technological change are needed for a stable Harrodian model. Second, the degree of technological change must lie within a specific range for the model to be stable.