On the Dynamics of the Savings Ratio and the Employment Rate

In this work we explore the dynamics of the savings ratio in the economy and its possible relationships with employment and growth rates. We set out from evolutionary economics and previous literature regarding studies of the labor market. The non-linear dynamic models we propose generate plausible results, multiple equilibria and certain zones with high sensitivity to initial conditions. We detect virtuous patterns of economic change but also dangerous zones which may seriously erode socio-economic stability. Our models are analytically tractable, which allows us to accurately define new relevant mechanisms for the present environment, characterized by radical uncertainty and fragile economic perspectives