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Dynamic Inefficiency in an Economy with Land

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  • Changyong Rhee

Abstract

Contrary to the belief that capital over-accumulation is impossible in an economy with land—i.e. a non-reproducible factor of production, this paper shows that the possibility of dynamic inefficiency depends on the income share of land, and examines the historical tendencies of the income share of land in the U.S.

Suggested Citation

  • Changyong Rhee, 1991. "Dynamic Inefficiency in an Economy with Land," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(4), pages 791-797.
    • Handle: RePEc:oup:restud:v:58:y:1991:i:4:p:791-797.
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    File URL: http://hdl.handle.net/10.2307/2297833
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    References listed on IDEAS

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    5. Stefan Homburg, 1991. "Interest and Growth in an Economy with Land," Canadian Journal of Economics, Canadian Economics Association, vol. 24(2), pages 450-459, May.
    6. Tirole, Jean, 1985. "Asset Bubbles and Overlapping Generations," Econometrica, Econometric Society, vol. 53(6), pages 1499-1528, November.
    7. Partha Dasgupta & Geoffrey Heal, 1974. "The Optimal Depletion of Exhaustible Resources," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 3-28.
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