How Tight are Malthusian Constraints?
We provide a methodology to estimate the elasticity of agricultural output with respect to land - the Malthusian constraint - using variation in rural densities across different locations. We use district-level data from around the globe on rural densities and inherent agricultural productivity to estimate the elasticity for various sub-samples. We find the elasticity is highest in areas that are suitable for temperate crops such as wheat or rye, and loosest in areas suitable for (sub)-tropical crops such as cassava or rice. We show theoretically that a higher elasticity results in greater sensitivity of non-agricultural employment and real income per capita to shocks in population size and productivity, and confirm this with evidence from the post-war mortality transition.
|Date of creation:||28 Jun 2017|
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Web page: http://www.uh.edu/class/economics/
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