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

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Author Info
Frank D. Lewis

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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.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 34 (2001)
Issue (Month): 1 (February)
Pages: 174-195
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Handle: RePEc:cje:issued:v:34:y:2001:i:1:p:174-195

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Find related papers by JEL classification:
N31 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - U.S.; Canada: Pre-1913
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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This page was last updated on 2008-8-19.

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