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Farm settlement with imperfect capital markets: a life-cycle application to Upper Canada, 1826-1851

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  • Frank D. Lewis

Abstract

Farm settlement, where borrowing is constrained, is addressed with a life-cycle model. Because a pioneer farm must be cleared before becoming productive, the settler first accumulates in order to purchase supplies and maintain consumption during the initial years. Implications of the model are explored using data from Upper Canada, 1826-1851: age at settlement is delayed. Settlers eventually receive higher incomes than those who do not settle; rising life expectancy contributes to settlement; an immediate income is a prerequisite to settlement. Such findings conform to the experience of Upper Canada and other pioneer areas and may also illuminate aspects of migration.

Suggested Citation

  • Frank D. Lewis, 2001. "Farm settlement with imperfect capital markets: a life-cycle application to Upper Canada, 1826-1851," Canadian Journal of Economics, Canadian Economics Association, vol. 34(1), pages 174-195, February.
    • Handle: RePEc:cje:issued:v:34:y:2001:i:1:p:174-195
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    References listed on IDEAS

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    1. Ferrie, Joseph P., 1994. "The Wealth Accumulation of Antebellum European Immigrants to the U.S., 1840–60," The Journal of Economic History, Cambridge University Press, vol. 54(1), pages 1-33, March.
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    5. Masao Ogaki & Carmen M. Reinhart, 1998. "Measuring Intertemporal Substitution: The Role of Durable Goods," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 1078-1098, October.
    6. Robert W. Fogel, 1986. "Nutrition and the Decline in Mortality since 1700: Some Preliminary Findings," NBER Chapters, in: Long-Term Factors in American Economic Growth, pages 439-556, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Vincent Geloso & Mathieu Bédard, 2018. "Was Economic Growth Likely in Lower Canada?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 33(Fall 2018), pages 1-23.
    2. Alex Armstrong & Frank D. Lewis, 2012. "International migration with capital constraints: interpreting migration from the Netherlands to Canada in the 1920s," Canadian Journal of Economics, Canadian Economics Association, vol. 45(2), pages 732-754, May.
    3. Geloso, Vincent J. & Salter, Alexander W., 2020. "State capacity and economic development: Causal mechanism or correlative filter?," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 372-385.
    4. Alexander Armstrong & Frank D. Lewis, 2009. "Capital Constraints And European Migration To Canada: Evidence From The 1920s Passenger Lists," Working Paper 1230, Economics Department, Queen's University.

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    More about this item

    JEL classification:

    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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