Technological advance Flashcards
Why did technological advance not equal LT increased income in the Malthusian economy
An increase in income leads to population growth
Fundamental growth equation
gy = agk + cgz + ga
ga
the rate of technological growth
k=
Capital per worker
Z=
Land per worker
c=
Returns to landowners
a=
Returns to capital owners
Which aspects of the equation are static?
agk = capital per worker
what is -gn =gz
gn
is the population growth rate
c=
share of land rent in income
Equation for technological advance rate
gn = (1/c)ga
What was the tech growth pre IR
0.05% per year vs 1%+ after
Why is population concentration a good indicator for technological advancement?
More advanced societies can support more people per acre
Conclusion on malthusian technology
Slow groth occuring
No obvious cause why growth so slow when incentives and institutions strong
