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Food Consumption and Growth in a Two Sector Economy - A Theoretical Model and Numerical Simulations

  • Thorsten Wichmann


    (Berlecon Research)

I discuss the dynamics of growth and structural change in a two- sector dual economy characterized by a positive relationship between nutrition and productivity. A rise in agricultural production increases food consumption as well as labor productivity. The different outcomes are discussed when the level of food consumption increases productivity either in agriculture or in industry (static effect) or when it influence the productivity of learning by doing (dynamic effect).

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Paper provided by Berlecon Research in its series Berlecon Research Papers with number 0001.

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Date of creation: Aug 1995
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Handle: RePEc:ber:bertw1:0001
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  1. Goffe, William L, 1993. "A User's Guide to the Numerical Solution of Two-Point Boundary Value Problems Arising in Continuous Time Dynamic Economic Models," Computational Economics, Society for Computational Economics, vol. 6(3-4), pages 249-55, November.
  2. Behrman, Jere R. & Deolalikar, Anil B., 1988. "Health and nutrition," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 14, pages 631-711 Elsevier.
  3. Kenneth J. Arrow, 1962. "The Economic Implications of Learning by Doing," Review of Economic Studies, Oxford University Press, vol. 29(3), pages 155-173.
  4. Pranab Bardhan., 1992. "Economics of Development and the Development of Economics," Economics Working Papers 92-196, University of California at Berkeley.
  5. Stiglitz, Joseph E, 1976. "The Efficiency Wage Hypothesis, Surplus Labour, and the Distribution of Income in L.D.C.s," Oxford Economic Papers, Oxford University Press, vol. 28(2), pages 185-207, July.
  6. Glewwe, Paul & Jacoby, Hanan G, 1995. "An Economic Analysis of Delayed Primary School Enrollment in a Low Income Country: The Role of Early Childhood Nutrition," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 156-69, February.
  7. Dorfman, Robert, 1969. "An Economic Interpretation of Optimal Control Theory," American Economic Review, American Economic Association, vol. 59(5), pages 817-31, December.
  8. Robert E. Hall, 1981. "Intertemporal Substitution in Consumption," NBER Working Papers 0720, National Bureau of Economic Research, Inc.
  9. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  10. Benhabib Jess & Perli Roberto, 1994. "Uniqueness and Indeterminacy: On the Dynamics of Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 63(1), pages 113-142, June.
  11. Giovannini, Alberto, 1985. "Saving and the real interest rate in LDCs," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 197-217, August.
  12. Casey B. Mulligan & Xavier Sala-i-Martin, 1993. "Transitional Dynamics in Two-Sector Models of Endogenous Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 739-773.
  13. Dipak Mazumdar, 1959. "The Marginal Productivity Theory of Wages and Disguised Unemployment," Review of Economic Studies, Oxford University Press, vol. 26(3), pages 190-197.
  14. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  15. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
  16. Casey B. Mulligan & Xavier Sala-i-Martin, 1991. "A Note on the Time-Elimination Method For Solving Recursive Dynamic Economic Models," NBER Technical Working Papers 0116, National Bureau of Economic Research, Inc.
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