VALUES OF LAND, GOLD, RENEWABLE RESOURCES AND CAPITAL IN A GROWTH MODEL WITH AGRICULTURAL AND INDUSTRIAL SECTORS

Анотація

This paper deals with a dynamic interdependence between
values of gold, capital, land and renewable resource in a three sector growth
model with endogenous wealth and renewable resources. The model is a
synthesis of the neoclassical growth theory, Ricardian theory and growth
theory with renewable resources. The economic system consists of the
households, industrial, agricultural, and resource sectors and given land and
gold. The economic system is perfectly competitive. We build the model of
capital and renewable resources with portfolio equilibrium. We provide a
computational procedure for simulating the model. The simulated case has a
unique stable equilibrium point. We plot the motion of the dynamic system. We
also conduct comparative dynamic analysis with regard to changes in the
propensity to use gold, the propensity to consume resources, the propensity to
consume housing, the propensity to consume agricultural goods, the
propensity to consume industrial goods, the propensity to hold wealth, and the
population.