Business cycles in a general equilibrium dynamic model with land value and rent
This study shows economic oscillations due to periodic changes in some parameters in the economic model proposed by Zhang (2014). This paper generalizes Zhang’s model by allowing all the time-independent parameters to be time dependent. The model deals with the relationship between growth a...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, Belgrade
2018-01-01
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| Series: | Ekonomski Anali |
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| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2018/0013-32641816007Z.pdf |
| Summary: | This study shows economic oscillations due to periodic changes in some
parameters in the economic model proposed by Zhang (2014). This paper
generalizes Zhang’s model by allowing all the time-independent parameters to
be time dependent. The model deals with the relationship between growth and
inequality in a two-sector growth modelling framework with different
time-dependent exogenous shocks. The model is based on the Walrasian general
equilibrium theory and the Solow-Uzawa neoclassical growth theory. The study
applies the utility function proposed by Zhang to describe the behaviour of
households. We simulate the model to demonstrate the existence of
equilibrium points, the motion of the dynamic system, and oscillations due
to different exogenous shocks. |
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| ISSN: | 0013-3264 1820-7375 |