Introducing Land Constraints to Macroeconomic Agent-Based Models

We present a macroeconomic agent-based model that incorporates land to constrain maximum agricultural production. The model contains three types of agents: firms, households, and land plots. Firms employ households to produce consumer goods which household then buy from firms. The maximum production of firms is limited by the area of land available to them. Varying the availability of land and investigating the results on unemployment, wage rates, firm turnover rates, profits, and inequality among households and firms shows that the interests of firms and households conflict regarding the ideal amount of land available for production.