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Oscillations in a Growth Model with Endogenous Wealth, Resource, Housing, and Elastic Labour Supply

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  • Wei-Bin Zhang

    (Ritsumeikan Asia Pacific University, Japan)

Abstract

Purpose: This paper is concerned with business cycles in the economic growth model with endogenous wealth and resources proposed by Zhang (2013). Methodology- The model studies dynamics of economic structure with housing, agricultural and industrial sectors. The land is distributed between renewable resource, agricultural, and farming use. The model combines the main economic mechanisms in the Solow growth model, the Ricardian two-sector economic model, and the logistic model in resource economics in a compact framework. Findings- The study makes a straightforward generalization of Zhang’s model by treating all the time-independent parameters as time-dependent parameters. Recommendations: We simulate the model to demonstrate existence of business oscillations under different periodic shocks.

Suggested Citation

  • Wei-Bin Zhang, 2015. "Oscillations in a Growth Model with Endogenous Wealth, Resource, Housing, and Elastic Labour Supply," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(9), pages 458-472, September.
    • Handle: RePEc:ijr:journl:v:3:y:2015:i:9:p:458-472
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    More about this item

    Keywords

    Economic oscillations; Renewable resource; Wealth accumulation; economic structure;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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