Land value fluctuations drive economic cycles, impacting growth and inequality.
The article explores how changes in certain factors can cause economic ups and downs in a model developed by Zhang. By making all fixed factors time-dependent, the model looks at how growth and inequality are linked in a two-sector framework with various external shocks. Using theories of general equilibrium and neoclassical growth, the study uses a utility function to describe household behavior. Through simulations, the research shows that the model has equilibrium points, dynamic system movements, and fluctuations caused by different shocks.