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The Determinants of Subsistence Income in a Malthusian World

  • Strulik, Holger
  • Weisdorf, Jacob

This 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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File URL: http://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-420.pdf
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Paper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Hannover Economic Papers (HEP) with number dp-420.

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Length: 9 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:han:dpaper:dp-420
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  1. Holger Strulik & Jacob Weisdorf, 2008. "Population, food, and knowledge: a simple unified growth theory," Journal of Economic Growth, Springer, vol. 13(3), pages 195-216, September.
  2. Kevin O’rourke & Jeffrey Williamson, 2005. "From Malthus to Ohlin: Trade, Industrialisation and Distribution Since 1500," Journal of Economic Growth, Springer, vol. 10(1), pages 5-34, 01.
  3. Quamrul Ashraf & Oded Galor, 2008. "Malthusian Population Dynamics: Theory and Evidence," Working Papers 2008-6, Brown University, Department of Economics.
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