The Determinants of Subsistence Income in a Malthusian World
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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| Length: | 9 pages |
| Date of creation: | Jul 2009 |
| Handle: | RePEc:han:dpaper:dp-420 |
| Contact details of provider: | Postal: Koenigsworther Platz 1, D-30167 Hannover Phone: (0511) 762-5350 Fax: (0511) 762-5665 Web page: http://www.wiwi.uni-hannover.de More information through EDIRC
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References listed on IDEAS
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- Quamrul Ashraf & Oded Galor, 2011.
"Dynamics and Stagnation in the Malthusian Epoch,"
American Economic Review,
American Economic Association, vol. 101(5), pages 2003-2041, August.
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- Quamrul Ashraf & Oded Galor, 2011. "Dynamics and Stagnation in the Malthusian Epoch," NBER Working Papers 17037, National Bureau of Economic Research, Inc.
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- Quamrul Ashraf & Oded Galor, 2008. "Dynamics and Stagnation in the Malthusain Epoch," Working Papers 2008-14, Brown University, Department of Economics.
- Quamrul Ashraf & Oded Galor, 2010. "Dynamics and Stagnation in the Malthusian Epoch," Department of Economics Working Papers 2010-01, Department of Economics, Williams College, revised May 2011.
- Ashraf, Quamrul & Galor, Oded, 2008. "Dynamics and Stagnation in the Malthusian Epoch: Theory and Evidence," CEPR Discussion Papers 7057, C.E.P.R. Discussion Papers.
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