Within an overlapping generations model of economic growth, the paper asks how the existence of a fixed supply of land or housing, whose price is bid up by economic growth, affects the accumulation of productive capital along the balanced growth of the economy. Land rules out the Golden rule...

By buying cheap and selling dear, risk-neutral commodity speculators can smooth commodity prices and induce serial dependence in price even when none would exist under a simple process of supply and demand. Commodity prices are variable and strongly positively correlated from one year to the...