<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This paper studies dynamic interdependence of capital, land and resource values in a three sector growth model with endogenous wealth and renewable resources. The model is based on the neoclassical growth theory, Ricardian theory and growth theory with renewable resources. The household’s decision is modeled with an alternative approach proposed by Zhang two decades ago. The economic system consists of the households, industrial, agricultural, and resource sectors. The model describes a dynamic interdependence between wealth accumulation, resource change, and division of labor under perfect competition. We simulate the model to demonstrate the existence of a unique stable equilibrium point and plot the motion of the dynamic system. The study conducts comparative dynamic analysis with regard to changes in the propensity to consume resources, the propensity to consume housing, the propensity to consume agricultural goods, the propensity to consume industrial goods, the propensity to save, the population, and the output elasticity of capital of the resource sector.</p></abstract>

This paper studies dynamic interdependence of capital, land and resource values in a three sector growth model with endogenous wealth and renewable resources. The model is based on the neoclassical growth theory, Ricardian theory and growth theory with renewable resources. The household’s decision is modeled with an alternative approach proposed by Zhang two decades ago. The economic system consists of the households, industrial, agricultural, and resource sectors. The model describes a dynamic interdependence between wealth accumulation, resource change, and division of labor under perfect competition. We simulate the model to demonstrate the existence of a unique stable equilibrium point and plot the motion of the dynamic system. The study conducts comparative dynamic analysis with regard to changes in the propensity to consume resources, the propensity to consume housing, the propensity to consume agricultural goods, the propensity to consume industrial goods, the propensity to save, the population, and the output elasticity of capital of the resource sector.

Values of Land and Renewable Resources in a Three-Sector Economic Growth Model

Ritsumeikan Asia Pacific University, Japan

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Values of Land and Renewable Resources in a Three-Sector Economic Growth Model"}

This paper studies dynamic interdependence of capital, land and resource values in a three sector growth model with endogenous wealth and renewable resources....

Values of Land and Renewable Resources in a Three-Sector Economic Growth Model

Published Online: Aug 25, 2015

Page range: 156 - 186

DOI: https://doi.org/10.1515/sbe-2015-0015

© 2015

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.