malthius model Flashcards
empirical evidence of malthuis model
before the industrial revolution
1 living standards did not change between countries given it depends on g(c) which is the same in all countries
2 standard of living did not increase significantly
agriculture economy with fixed land
Down fall of malthuis
After the revolution
1 sustained growth in living standards without child policy or government control
2 rich countries some have a lower birth rate some have a higher life expectancy and larger population due to immigration
which means living standards do not depend on the population
the population growth rate does not depend on the consumption per worker and nutrients
poor countries has high population and increasing growth rate despite a lower c
Malthuis Model assumption
Y=zf(L,N) land is fixed N increase of g(c) C=C/N nutrient
Y=C
steady state is given as Nā/N=1=g(c)
which gives us c=y=zf(k)
two graphs one y: (nā/n) x; ( c ) fn is g(c)
shift inc in growth rate or dec in growth rate
second is y: ( y ) x: ( k ) fn is zf(l)
shift with inc in l or inc in z
g(c)inc with a dec rate because Land is fixed the increase in N inc Y but with less than one because of diminishing marginal return of labour
The inc in z
inc fn to shift up model two inc zf(l) toz2f(l) leads to same level of l to higher c
higher c leads to higher N because g(c) higher than g(c) as consumption per worker higher than steady state
N increases so move along the curve of zf(l) to return back to same level of c
this eventually leads to lower l since land is fixed and N increased by the the same amount of the increase in y that increased due to increase in z
one child policy
G(c) decrease as the birth rate decreased this shift the function down.
the steady state of consumption is that g(c)=1
the new function corresponds to a higher c* which move along the zf(l) to higher y and l
the only increase in living standards arise from the decrease in population
death ta3on
same as previous but as the disease disappear death rate began to decrease and return to normal where we also return to the same level as before