IDEAS home Printed from https://ideas.repec.org/p/zbw/gdec10/3.html
   My bibliography  Save this paper

The Physiological Foundations of the Wealth of Nations

Author

Listed:
  • Dalgaard, Carl-Johan
  • Strulik, Holger

Abstract

Evidence from economics, anthropology and biology testifies to a fundamental household trade-off between the number of offspring (quantity) and amount of nutrition per child (quality). This leads to a theory of pre-industrial growth where body size as well as population size is endogenous. But when productive quality investments are undertaken the historical constancy of income per capita seems puzzling. Why didn't episodes of rising income instigate a virtuous circle of rising body size and productivity? To address this question we propose that societies are subject to a \physiological check: if human body size rises, metabolic needs - our conceptualization of \subsistence requirements - rise. This mechanism turns out to be instrumental in explaining why income growth does not take hold and societies remain near an endogenously determined subsistence boundary. When we use the theory to shed light on pre-industrial cross-country income differences we find that 60-70% of the income differences in 1500 can plausibly be accounted for by variations in subsistence requirements.

Suggested Citation

  • Dalgaard, Carl-Johan & Strulik, Holger, 2010. "The Physiological Foundations of the Wealth of Nations," Proceedings of the German Development Economics Conference, Hannover 2010 3, Verein für Socialpolitik, Research Committee Development Economics.
  • Handle: RePEc:zbw:gdec10:3
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/39963/1/252_strulik.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Oded Galor & Omer Moav, 2002. "Natural Selection and the Origin of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1133-1191.
    2. Schneider, Ryan, 1996. "Historical note on height and parental consumption decisions," Economics Letters, Elsevier, vol. 50(2), pages 279-283, February.
    3. Nathan Nunn & Diego Puga, 2012. "Ruggedness: The Blessing of Bad Geography in Africa," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 20-36, February.
    4. Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
    5. 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.
    6. Sharon Maccini & Dean Yang, 2009. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall," American Economic Review, American Economic Association, vol. 99(3), pages 1006-1026, June.
    7. Carl-Johan Dalgaard & Holger Strulik, 2015. "The physiological foundations of the wealth of nations," Journal of Economic Growth, Springer, vol. 20(1), pages 37-73, March.
    8. Woitek, Ulrich, 2003. "Height cycles in the 18th and 19th centuries," Economics & Human Biology, Elsevier, vol. 1(2), pages 243-257, June.
    9. Oded Galor, 2010. "The 2008 Lawrence R. Klein Lecture-Comparative Economic Development: Insights From Unified Growth Theory," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(1), pages 1-44, February.
    10. Alberto Alesina & Paola Giuliano & Nathan Nunn, 2013. "On the Origins of Gender Roles: Women and the Plough," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 469-530.
    11. Salam Abdus & Peter Rangazas, 2011. "Adult Nutrition and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(4), pages 636-649, October.
    12. Yoko Akachi & David Canning, 2007. "The Height of Women in Sub-Saharan Africa: the Role of Health, Nutrition, and Income in Childhood," PGDA Working Papers 2207, Program on the Global Demography of Aging.
    13. Shekhar Aiyar & Carl-Johan Dalgaard & Omer Moav, 2008. "Technological progress and regress in pre-industrial times," Journal of Economic Growth, Springer, vol. 13(2), pages 125-144, June.
    14. Robert E. Lucas, 2000. "Some Macroeconomics for the 21st Century," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 159-168, Winter.
    15. Gustafsson, Bjorn & Kjulin, Urban, 1994. "Time Use in Child Care and Housework and the Total Cost of Children," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(3), pages 287-306, July.
    16. Matteo Cervellati & Uwe Sunde, 2015. "The Economic and Demographic Transition, Mortality, and Comparative Development," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(3), pages 189-225, July.
    17. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
    18. Galor, Oded, 2005. "From Stagnation to Growth: Unified Growth Theory," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 4, pages 171-293, Elsevier.
    19. Koepke, Nikola & Baten, Joerg, 2005. "The biological standard of living in Europe during the last two millennia," European Review of Economic History, Cambridge University Press, vol. 9(1), pages 61-95, April.
    20. Gary D. Hansen & Edward C. Prescott, 2002. "Malthus to Solow," American Economic Review, American Economic Association, vol. 92(4), pages 1205-1217, September.
    21. David N. Well, 2007. "Accounting for the Effect Of Health on Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1265-1306.
    22. Stelios Michalopoulos & Elias Papaioannou, 2013. "Pre‐Colonial Ethnic Institutions and Contemporary African Development," Econometrica, Econometric Society, vol. 81(1), pages 113-152, January.
    23. Oded Galor, 2007. "Discrete Dynamical Systems," Springer Books, Springer, edition 1, number 978-3-540-36776-5, June.
    24. Voth, Hans-Joachim & Voigtländer, Nico, 2009. "The Three Horsemen of Growth: Plague, War and Urbanization in Early Modern Europe," CEPR Discussion Papers 7275, C.E.P.R. Discussion Papers.
    25. Dalgaard, Carl-Johan & Strulik, Holger, 2013. "The history augmented Solow model," European Economic Review, Elsevier, vol. 63(C), pages 134-149.
    26. Louis Putterman & David N. Weil, 2010. "Post-1500 Population Flows and The Long-Run Determinants of Economic Growth and Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1627-1682.
    27. Geoffrey B. West & James H. Brown & Brian J. Enquist, 1997. "A General Model for the Origin of Allometric Scaling Laws in Biology," Working Papers 97-03-019, Santa Fe Institute.
    28. Fogel, Robert W, 1994. "Economic Growth, Population Theory, and Physiology: The Bearing of Long-Term Processes on the Making of Economic Policy," American Economic Review, American Economic Association, vol. 84(3), pages 369-395, June.
    29. Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 720-744, August.
    30. Komlos, John & Baten, Jörg, 2003. "Looking Backward and Looking Forward: Anthropometric Research and the Development of Social Science History," Discussion Papers in Economics 59, University of Munich, Department of Economics.
    31. Karine S. Moe, 1998. "Fertility, Time Use, and Economic Development," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(3), pages 699-718, July.
    32. Nathan Nunn & Leonard Wantchekon, 2011. "The Slave Trade and the Origins of Mistrust in Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3221-3252, December.
    33. Jacob L. Weisdorf, 2005. "From Foraging To Farming: Explaining The Neolithic Revolution," Journal of Economic Surveys, Wiley Blackwell, vol. 19(4), pages 561-586, September.
    34. David N. Weil & Oded Galor, 1999. "From Malthusian Stagnation to Modern Growth," American Economic Review, American Economic Association, vol. 89(2), pages 150-154, May.
    35. Gary D. Hansen & Edward C. Prescott, 2002. "Malthus to Solow," American Economic Review, American Economic Association, vol. 92(4), pages 1205-1217, September.
    36. Sharp, Paul & Strulik, Holger & Weisdorf, Jacob, 2012. "The determinants of income in a Malthusian equilibrium," Journal of Development Economics, Elsevier, vol. 97(1), pages 112-117.
    37. John Komlos, 1989. "Nutrition and Economic Development in the Eighteenth-Century Habsburg Monarchy: An Anthropometric History," Books by John Komlos, Department of Economics, University of Munich, number 2, June.
    38. Weir, David R., 1993. "Parental Consumption Decisions and Child Health During the Early French Fertility Decline, 1790–1914," The Journal of Economic History, Cambridge University Press, vol. 53(2), pages 259-274, June.
    39. Brinkman, Henk Jan & Drukker, J. W. & Slot, Brigitte, 1988. "Height and income: A new method for the estimation of historical national income series," Explorations in Economic History, Elsevier, vol. 25(3), pages 227-264, July.
    40. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    41. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
    42. Richard H. Steckel, 1982. "Height and Per Capita Income," NBER Working Papers 0880, National Bureau of Economic Research, Inc.
    43. Geoffrey B. West & James H. Brown & Brian J. Enquist, 2001. "A general model for ontogenetic growth," Nature, Nature, vol. 413(6856), pages 628-631, October.
    44. Francesco Caselli & Wilbur John Coleman II, 2001. "The U.S. Structural Transformation and Regional Convergence: A Reinterpretation," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 584-616, June.
    45. Michael Kremer, 1993. "Population Growth and Technological Change: One Million B.C. to 1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 681-716.
    46. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
    47. Gregory Clark, 2007. "Introduction to A Farewell to Alms: A Brief Economic History of the World," Introductory Chapters, in: A Farewell to Alms: A Brief Economic History of the World, Princeton University Press.
    48. Charles-A. Darveau & Raul K. Suarez & Russel D. Andrews & Peter W. Hochachka, 2002. "Allometric cascade as a unifying principle of body mass effects on metabolism," Nature, Nature, vol. 417(6885), pages 166-170, May.
    49. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240, National Bureau of Economic Research, Inc.
    50. repec:lmu:muenar:20074 is not listed on IDEAS
    51. Xin Meng & Nancy Qian, 2009. "The Long Term Consequences of Famine on Survivors: Evidence from a Unique Natural Experiment using China's Great Famine," NBER Working Papers 14917, National Bureau of Economic Research, Inc.
    52. Lee, Maw Lin & Loschky, David, 1987. "Malthusian Population Oscillations," Economic Journal, Royal Economic Society, vol. 97(387), pages 727-739, September.
    53. Matthew Baker, 2008. "A structural model of the transition to agriculture," Journal of Economic Growth, Springer, vol. 13(4), pages 257-292, December.
    54. Jeffrey Sachs & Pia Malaney, 2002. "The economic and social burden of malaria," Nature, Nature, vol. 415(6872), pages 680-685, February.
    55. Carl-Johan Dalgaard & Holger Strulik, 2011. "A physiological foundation for the nutrition-based efficiency wage model," Oxford Economic Papers, Oxford University Press, vol. 63(2), pages 232-253, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dalgaard, Carl-Johan & Strulik, Holger, 2007. "A Bioeconomic Foundation of the Malthusian Equilibrium: Body Size and Population Size in the Long-Run," Hannover Economic Papers (HEP) dp-373, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    2. 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.
    3. Carl-Johan Dalgaard & Holger Strulik, 2014. "Physiological Constraints and Comparative Economic Development," Discussion Papers 14-21, University of Copenhagen. Department of Economics.
    4. Carl-Johan Dalgaard & Holger Strulik, 2006. "Subsistence – A Bio-economic Foundation of the Malthusian Equilibrium," Discussion Papers 06-17, University of Copenhagen. Department of Economics.
    5. Carl‐Johan Dalgaard & Holger Strulik, 2016. "Physiology and Development: Why the West is Taller Than the Rest," Economic Journal, Royal Economic Society, vol. 126(598), pages 2292-2323, December.
    6. Galor, Oded & Ashraf, Quamrul, 2008. "Dynamics and Stagnation in the Malthusian Epoch: Theory and Evidence," CEPR Discussion Papers 7057, C.E.P.R. Discussion Papers.
    7. Enrico Spolaore & Romain Wacziarg, 2013. "How Deep Are the Roots of Economic Development?," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 325-369, June.
    8. Carl-Johan Dalgaard & Jakob B. Madsen & Holger Strulik, 2021. "Physiological constraints and the transition to growth: implications for comparative development," Journal of Economic Growth, Springer, vol. 26(3), pages 241-289, September.
    9. Chiarini, Bruno, 2010. "Was Malthus right? The relationship between population and real wages in Italian history, 1320 to 1870," Explorations in Economic History, Elsevier, vol. 47(4), pages 460-475, October.
    10. Ho, Chi Pui, 2016. "Industrious Selection: Explaining Five Revolutions and Two Divergences in Eurasian Economic History within a Unified Growth Framework," MPRA Paper 73862, University Library of Munich, Germany.
    11. Maseland, Robbert, 2021. "Contingent determinants," Journal of Development Economics, Elsevier, vol. 151(C).
    12. Sara LaLumia & James Sallee, 2013. "The value of honesty: empirical estimates from the case of the missing children," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(2), pages 192-224, April.
    13. Sascha Becker & Francesco Cinnirella & Ludger Woessmann, 2010. "The trade-off between fertility and education: evidence from before the demographic transition," Journal of Economic Growth, Springer, vol. 15(3), pages 177-204, September.
    14. Nguyen Thang Dao & Julio Dávila & Angela Greulich, 2021. "The education gender gap and the demographic transition in developing countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 431-474, April.
    15. Schultz, T. Paul, 2010. "Population and Health Policies," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4785-4881, Elsevier.
    16. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    17. Quamrul Ashraf & Stelios Michalopoulos, 2010. "The Climatic Origins of the Neolithic Revolution: Theory and Evidence," Discussion Papers Series, Department of Economics, Tufts University 0751, Department of Economics, Tufts University.
    18. Joel Mokyr & Hans-Joachim Voth, 2012. "Understanding Growth in Europe, 1700–1870: Theory and Evidence," Journal of Economic Sociology, National Research University Higher School of Economics, vol. 13(5), pages 57-102.
    19. Nico Voigtl?nder & Hans-Joachim Voth, 2013. "How the West "Invented" Fertility Restriction," American Economic Review, American Economic Association, vol. 103(6), pages 2227-2264, October.
    20. Carolyn Chisadza & Manoel Bittencourt, 2015. "Education and Fertility: Panel Evidence from sub-Saharan Africa," Working Papers 201526, University of Pretoria, Department of Economics.

    More about this item

    Keywords

    Malthusian stagnation; Subsistence; Nutrition; Body size; Population growth;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:gdec10:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfselea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.