The Determinants of Income in a Malthusian Equilibrium

Paul Richard Sharp; Holger Strulik; Jacob Louis Weisdorf

doi:10.1016/j.jdeveco.2010.12.004

The Determinants of Income in a Malthusian Equilibrium

Paul Richard Sharp, Holger Strulik, Jacob Louis Weisdorf

Department of Economics

11 Citations (Scopus)

Abstract

This study constructs a simple, two-sector Malthusian model with agriculture and industry, and uses it to identify the determinants of income in a Malthusian equilibrium. We make standard assumptions about preferences and technologies, but in contrast to existing studies we assume that children and other consumption goods are gross substitutes. Consistent with the conventional Malthusian model, the present theory shows that productivity growth in agriculture has no effect on equilibrium income. More importantly, we also show that equilibrium income varies, not just with the death rate as has recently been demonstrated in the literature, but also with the level of productivity in the industrial sector. An empirical analysis using data for pre-industrial England lends support to both hypotheses.

Original language	English
Journal	Journal of Development Economics
Volume	97
Issue number	1
Pages (from-to)	112–117
ISSN	0304-3878
DOIs	https://doi.org/10.1016/j.jdeveco.2010.12.004
Publication status	Published - Jan 2012

Access to Document

10.1016/j.jdeveco.2010.12.004

Cite this

@article{55ff124a7eea4e16853e67f7e79e4b3d,

title = "The Determinants of Income in a Malthusian Equilibrium",

abstract = "This study constructs a simple, two-sector Malthusian model with agriculture and industry, and uses it to identify the determinants of income in a Malthusian equilibrium. We make standard assumptions about preferences and technologies, but in contrast to existing studies we assume that children and other consumption goods are gross substitutes. Consistent with the conventional Malthusian model, the present theory shows that productivity growth in agriculture has no effect on equilibrium income. More importantly, we also show that equilibrium income varies, not just with the death rate as has recently been demonstrated in the literature, but also with the level of productivity in the industrial sector. An empirical analysis using data for pre-industrial England lends support to both hypotheses.",

author = "Sharp, {Paul Richard} and Holger Strulik and Weisdorf, {Jacob Louis}",

note = "JEL classification: J13; N1; 011",

year = "2012",

month = jan,

doi = "10.1016/j.jdeveco.2010.12.004",

language = "English",

volume = "97",

pages = "112–117",

journal = "Journal of Development Economics",

issn = "0304-3878",

publisher = "Elsevier",

number = "1",

}

TY - JOUR

T1 - The Determinants of Income in a Malthusian Equilibrium

AU - Sharp, Paul Richard

AU - Strulik, Holger

AU - Weisdorf, Jacob Louis

N1 - JEL classification: J13; N1; 011

PY - 2012/1

Y1 - 2012/1

N2 - This study constructs a simple, two-sector Malthusian model with agriculture and industry, and uses it to identify the determinants of income in a Malthusian equilibrium. We make standard assumptions about preferences and technologies, but in contrast to existing studies we assume that children and other consumption goods are gross substitutes. Consistent with the conventional Malthusian model, the present theory shows that productivity growth in agriculture has no effect on equilibrium income. More importantly, we also show that equilibrium income varies, not just with the death rate as has recently been demonstrated in the literature, but also with the level of productivity in the industrial sector. An empirical analysis using data for pre-industrial England lends support to both hypotheses.

AB - This study constructs a simple, two-sector Malthusian model with agriculture and industry, and uses it to identify the determinants of income in a Malthusian equilibrium. We make standard assumptions about preferences and technologies, but in contrast to existing studies we assume that children and other consumption goods are gross substitutes. Consistent with the conventional Malthusian model, the present theory shows that productivity growth in agriculture has no effect on equilibrium income. More importantly, we also show that equilibrium income varies, not just with the death rate as has recently been demonstrated in the literature, but also with the level of productivity in the industrial sector. An empirical analysis using data for pre-industrial England lends support to both hypotheses.

U2 - 10.1016/j.jdeveco.2010.12.004

DO - 10.1016/j.jdeveco.2010.12.004

M3 - Journal article

SN - 0304-3878

VL - 97

SP - 112

EP - 117

JO - Journal of Development Economics

JF - Journal of Development Economics

IS - 1

ER -