VALUES OF LAND, GOLD, RENEWABLE RESOURCES AND CAPITAL IN A GROWTH MODEL WITH AGRICULTURAL AND INDUSTRIAL SECTORS
Abstract
This paper deals with a dynamic interdependence betweenvalues 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.
Downloads
Published
2017-02-27
Issue
Section
Article
License
Relationship between right holders and users shall be governed by the terms of the license Creative Commons Attribution – non-commercial – Distribution On Same Conditions 4.0 international (CC BY-NC-SA 4.0):https://creativecommons.org/licenses/by-nc-sa/4.0/deed.uk
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).