GOLD AND LAND PRICES WITH CAPITAL ACCUMULATION IN AN ECONOMY WITH INDUSTRIAL AND AGRICULTURAL SECTORS
The purpose of this study is to examine dynamic interactions among gold value, land price and economic structure in a growth model with capital accumulation. The paper proposes a two-sector general equilibrium model with land and gold prices as endogenous variables. The economy consists of industr...
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| Format: | Article |
| Language: | English |
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Academica Brâncuşi
2016-04-01
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| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
| Subjects: | |
| Online Access: | http://www.utgjiu.ro/revista/ec/pdf/2016-02/02_Zhang%20Wei%20-Bin.pdf |
| Summary: | The purpose of this study is to examine dynamic interactions among gold value, land price and economic structure
in a growth model with capital accumulation. The paper proposes a two-sector general equilibrium model with land and
gold prices as endogenous variables. The economy consists of industrial and agricultural sectors with fixed land and gold.
Land is used for residential use and agricultural production and gold is used for saving and decorations. The portfolio
equilibrium growth model is based on the neoclassical growth theory and Ricardian theory. We simulate the model to
demonstrate that the economic system has a unique stable steady state. We show how exogenous changes in preference and
technology affect the transitory processes and long-term equilibrium.
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| ISSN: | 1844-7007 1844-7007 |