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Demopgraphic Resonse to Agricultural Reform - Long-run Effects on Consumption, Wages and Population Density


  • Horn af Rantzien, Mia


Agricultural reform in a rural economy, comprising two separable landholding classes is analyzed in an over-lapping generations framework. "The poor" work the land and have children to provide for family labor and old age support. "Landlords" only use hired labor and maximize profits. It is shown that a land reform in favor of poor peasants increases the market wage and life consumption among poor peasants, and decreases population density in the new stationary state. The effects of a land- augmenting green revolution depend on its distributional characteristics. If directed towards landlords, such reform will decrease life consumption in poor households, decrease the market wage and increase population density in the new stationary state, while the effects are opposite if directed towards poor households.

Suggested Citation

  • Horn af Rantzien, Mia, 1994. "Demopgraphic Resonse to Agricultural Reform - Long-run Effects on Consumption, Wages and Population Density," SSE/EFI Working Paper Series in Economics and Finance 28, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0028

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    More about this item


    Land reform; endogenous fertility; population old age security; farm size;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment


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