| ID | 159347 |
| Title Proper | Business cycles in a three-sector growth model with portfolio equilibrium between land, gold and capital |
| Language | ENG |
| Author | Zhang, Wei-Bin |
| Summary / Abstract (Note) | This study generalises a growth model proposed by Zhang (2016) through allowing all the time-dependent variables to be time-dependent. Zhang’s model deals with dynamic interdependence between capital accumulation and environmental change, with portfolio equilibrium among land, gold and physical wealth in a multi-sector general equilibrium framework. The model explains the dynamics of prices, rents and distribution of land, gold, physical wealth and environmental change on the basis of micro-economic foundation. This article generalises the model to explain business cycles due to different exogenous shocks. We simulate the motion of the economy and conduct comparative dynamic analysis to demonstrate business cycles due to periodic oscillations in the propensity to use gold, the propensity to consume housing, the propensity to consume industrial goods, the propensity to consume agricultural goods, the propensity to save, and the tax rate on the consumption of industrial goods. |
| `In' analytical Note | Margin Vol. 12, No.2; May 2018: p.171-196 |
| Journal Source | Margin 2018-05 12, 2 |
| Key Words | Business Cycles ; Environmental Change ; Wealth Accumulation ; Periodic Perturbations ; Land Value ; Gold Value |