The Determinants of Subsistence Income in a Malthusian World
AbstractThis study constructs a simple, two-sector Malthusian model with agriculture and industry, and use it to identify the determinants of subsistence income. We make standard assumptions about preferences and production technology, but by contrast to existing studies we assume that children and other consumption goods are gross substitutes. Consistent with the traditional Malthusian model, we nd that productivity growth in agriculture has no e ect on subsistence income. More importantly, we also nd that subsistence income increases, not just with the death rate as has recently been demonstrated in the literature, but also with productivity in manufacturing.
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Bibliographic InfoPaper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Hannover Economic Papers (HEP) with number dp-420.
Length: 9 pages
Date of creation: Jul 2009
Date of revision:
Malthusian Model; Subsistence Income;
Other versions of this item:
- Paul Sharp & Holger Strulik & Jacob Weisdorf, 2010. "The Determinants of Subsistence Income in a Malthusian World," Global COE Hi-Stat Discussion Paper Series gd09-133, Institute of Economic Research, Hitotsubashi University.
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-17 (All new papers)
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