Abstract

ZHANG, Wei-Bin. Growth with residential density, land rent and land value. Revista de coyuntura y perspectiva [online]. 2021, vol.6, n.1, pp.79-116. ISSN 2415-0622.

Asbtract Huge capital accumulation, speedy urbanization, and rising land prices are main characters of modern economies. This study examines these phenomena within an integrated framework on basis of economic growth theory, spatial economics, and urban economics. It builds a spatial growth model with residential distribution by integrating the Solow growth and Alonso residential models to provide some insights into the economic mechanisms. A unique feature of the study is to endogenously determine land value and rent with interactions between wealth accumulation, amenity, land, and transportation conditions. We simulate the motion of the economy over time and space. We carry out comparative dynamic analysis with regards to the total productivity of the production sector, transportation conditions, amenity, and preference. The paper demonstrates how economic growth, residential distribution, portfolio choice, and land rent and price interact over time and space.

Keywords : Land value; economic growth; housing rent; residential distribution.

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