EconPapers    
Economics at your fingertips  
 

Land Price Dynamics in a Two-Sector Growth Model

Wei-Bin Zhang ()

International Journal of Economics and Empirical Research (IJEER), 2015, vol. 3, issue 1, 25-38

Abstract: This study builds a two-sector growth model with endogenous wealth accumulation and land price. The economy consists of industrial and agricultural sectors. Methodology: The model is based on the neoclassical growth theory and Ricardian theory. The household’s decision is modeled with an alternative approach proposed by Zhang two decades ago. By simulation, we demonstrate that the economic system has a unique stable steady state. The study conducts comparative dynamic analysis with regard to changes in the preference and the two sectors’ output elasticities of capital. Findings: Our results demonstrate that economic growth is in tandem with land prices. Recommendations: We show this often-mentioned empirical conclusion in an integrated neoclassical growth theory and Ricardian theory.

Keywords: Land Value and Rent; Growth Model; Wealth Accumulation; Economic Structure (search for similar items in EconPapers)
JEL-codes: D13 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://tesdo.org/shared/upload/pdf/papers/IJEER,%203_1_,%2025-38.pdf (application/pdf)
http://tesdo.org/journal_detail.php?paper_id=121&expand_year=2015 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ijr:journl:v:3:y:2015:i:1:p:25-38

Access Statistics for this article

International Journal of Economics and Empirical Research (IJEER) is currently edited by Dr. Muhammad Shahbaz (PhD Applied Economics)

More articles in International Journal of Economics and Empirical Research (IJEER) from The Economics and Social Development Organization (TESDO) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Shahbaz (PhD Applied Economics) ().

 
Page updated 2022-10-03
Handle: RePEc:ijr:journl:v:3:y:2015:i:1:p:25-38