Since 1975, the aggregate value of residential land has averaged approximately 90% of GDP and has recently risen to 125% of GDP. In this paper, I use a calibrated general-equilibrium model with idisyncratic labor productivity draws to attempt to measure the extent to which current tax policies, and properties of the income distribution, interact to determine the aggregate value of land. Many features of the model are fairly standard — households receive after-tax capital and labor income and each period make decisions on how much consumption to enjoy, how many hours to work, and how many financial assets to carry forward to the next period. Each period, households also must decide how much to spend on “land.†Households use land in the model to reduce unpaid hours ("commuting time") associated with working. By assumption, when households purchase more land they reduce their commute and households with a shorter commute have more time available to work or enjoy leisure. The aggregate quantity of land is assumed to be in fixed supply
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by Society for Economic Dynamics in its series 2006 Meeting Papers with number
225.
Length: Date of creation: 03 Dec 2006 Date of revision: Handle: RePEc:red:sed006:225
Contact details of provider: Postal: Society for Economic Dynamics Anne Stubing CV Starr Center for Applied Economics 269 Mercer Street, Room 303 New York University New York, NY 10003 Fax: 1-860-486-4463 Email: Web page: http://www.EconomicDynamics.org/society.htm More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Christian Zimmermann).