The Expansion of the Commercial Sector and the Child Quantity-Quality Transition in a Malthusian World
AbstractThis paper constructs a simple Malthusian model to explain per capita income differences in the Malthusian era by focusing on regional variations in the expansion of the commercial sector. This paper shows that a larger productivity improvement in the skilled intensive commercial sector relative to the improvement in the unskilled intensive agricultural sector causes a higher per capita income in the Malthusian steady-state equilibrium by enhancing the child quantity-quality transition. From the late Middle Ages, Northwestern Europe (Britain and the Netherlands) was characterized by dramatic growth of both the commercial sector and urbanization, high literacy rates, and a low-pressure demographic regime, and thus, these regions developed very differently from the rest of Europe. Our results are somewhat consistent with the relevant experiences of Northwestern Europe in the preindustrial era.
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Bibliographic InfoPaper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 105.
Length: 30 pages
Date of creation: May 2013
Date of revision: May 2013
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Commercial Sector; Sectoral Productivity Improvement; Child Quantity-Quality Transition; Malthusian Era;
Find related papers by JEL classification:
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- 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
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-06-09 (Agricultural Economics)
- NEP-ALL-2013-06-09 (All new papers)
- NEP-DEM-2013-06-09 (Demographic Economics)
- NEP-HIS-2013-06-09 (Business, Economic & Financial History)
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