Global Growth and National Urban Development with Housing

Year 2020, Volume: 4 Issue: 2, 382 - 421, 31.05.2020

Wei-bin Zhang

https://doi.org/10.25295/fsecon.2020.02.007

Abstract

The purpose of this study is to examine dynamic interactions among economic growth, housing markets, residential distribution and international trade. The paper builds a multi-country growth model with economic geography and capital accumulation. The unique feature of the paper is to introduce economic geography and housing markets into a multi-country growth model with microeconomic foundations. The model is developed by integrating the four well-known key models – the Solow growth model, the Oniki–Uzawa trade model, the Alonso urban model, and the Muth housing model – in growth theory, international growth economics and urban economics within a comprehensive framework. We show that the dynamics of the J -country world economy can be described by J differential equations. We also simulate the global economy with three countries.

Keywords

Trade Pattern, Residential Structure, Growth, Capital Accumulation

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