The determinants of income in a Malthusian equilibrium
Abstract
This study constructs a simple, two-sector Malthusian model with agriculture and industry, and uses it to identify the determinants of income in a Malthusian equilibrium. We make standard assumptions about preferences and technologies, but in contrast to existing studies we assume that children and other consumption goods are gross substitutes. Consistent with the conventional Malthusian model, the present theory shows that productivity growth in agriculture has no effect on equilibrium income. More importantly, we also show that equilibrium income varies, not just with the death rate as has recently been demonstrated in the literature, but also with the level of productivity in the industrial sector. An empirical analysis using data for pre-industrial England lends support to both hypotheses.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 97 (2012)
Issue (Month): 1 ()
Pages: 112-117
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Web page: http://www.elsevier.com/locate/devec
Related research
Keywords: Malthusian model; Subsistence income;Find related papers by JEL classification:
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Carl-Johan Dalgaard & Holger Strulik, 2010.
"The Physiological Foundations of the Wealth of Nations,"
Discussion Papers
10-05, University of Copenhagen. Department of Economics.
- Dalgaard, Carl-Johan & Strulik, Holger, 2011. "The Physiological Foundations of the Wealth of Nations," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Leibniz Universität Hannover dp-480, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Dalgaard, Carl-Johan & Strulik, Holger, 2010. "The Physiological Foundations of the Wealth of Nations," Proceedings of the German Development Economics Conference, Hannover 2010 3, Verein für Socialpolitik, Research Committee Development Economics.
- Holger Strulik, 2012. "From Worship to Worldly Pleasures: Secularization and Long-Run Economic Growth," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 116, Courant Research Centre PEG.
- Strulik, Holger, 2010.
"Knowledge and Growth in the Very Long-Run,"
Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Leibniz Universität Hannover
dp-459, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Strulik, Holger, 2012. "Knowledge and growth in the very long run," Center for European, Governance and Economic Development Research Discussion Papers 145, University of Goettingen, Department of Economics.
- Strulik, Holger, 2009. "Knowledge and Growth in the Very Long-Run," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Leibniz Universität Hannover dp-414, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Strulik, Holger, 2012. "Knowledge and growth in the very long run," Center for European, Governance and Economic Development Research Discussion Papers 145, University of Goettingen, Department of Economics.
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