Midterm 1.docx - Midterm 1 Macro 2 Population Growth and...

This preview shows page 1 - 3 out of 7 pages.

Midterm 1 – Macro 2. Population Growth and Demographic Transition (PRLB, Ch. 7) - Y = F ( K , L ) - If MPL>APL -> A rise of GDP per capita - If MPL<APL -> A fall of GDP per capita - IRS Technology -> A rise in L has a net effect on GDP - CRS Technology -> A rise in L will never increase Y/L and likely lead to a fall in GDP - Rapid population growth is not the best for GDP_PC Growth o LDC: High population growth o DC: Low population growth - Crude Birth Rate (CBR): Number of live births per 1000 population o Depends on age distribution of a country Younger populations lead to higher CBR - Crude Death Rate (CDR): Number of deaths per 1000 population - Crude Rate of Natural Increase (CRNI): population growth rate CBR – CDR - Total Fertility Rate (TFR): A synthetic measurement of number children born to the typical average women in a country who lives at least to the age of 49 o Length of Age Interval 1000 ASBR o Average specific birth rate (ASBR): Number of children born per women in age cohort 0-20 10 A=1 20-40 30 A=2 40-60 5 A=3 Ex: 20 × 45 1000 = 0.9 o Note: The TFR does not depend on a common age distribution TFR is better suited for international composition of fertilely behavior than the CBR Use CBR for population growth calculation - Survival rate (SR): % of women who live to the end of child bearing years (49) 0<SR<1 - Replacement Level Fertility (RLF): R/SR or # of level fertility needed to keep population size constant Ex: SR =1 and RLF = 2 then SR = 0.5 RLF = 4 - In a DC – RLF =2.1 - Population Growth = CRNI + Net I - Net I: the net immigrants that [ immigrants rate – emigrant rate ] - Note: TFR < RLF Population growth is negative in the LR o In 2014 population growth in HIC was positive (0.3) Reasons – 1. Positive Net Immigration 2. Population Momentum - Population momentum: rapid growth before most fertile which echoes into the future, is curse if the age distribution is skewed toward the young - TFR above replacement levels because 1. Desire for large families 2. Failure to achieve desired number of children 3. Population momentum How important is population for population growth?
Image of page 1

Subscribe to view the full document.

LDC High CBR High CDR DC Low LBR Low LBR - Demographic Transition: Economic development includes the change from high CBR and CDR to low CBR and CDR A. Traditional Stage B. Transition Stage C. Modern Stage High CBR – old age support, child labor, high infant mortality rate High CDR – poor medical knowledge/disease, war, famine PHASE 1 Rising CBR – rising incomes lead to higher demand for children, higher fecundity (healthy women more likely to get pregnant Falling CDR – better medical knowledge, higher agriculture production, food supply, cleaner water supply and sewage treatment PHASE 2 Declining CBR – fewer children to raise quality, more secular Falling CDR – Same as phase 1 Falling CBR – Social Security, child labor laws Falling CDR – same as transition stage Economic models that link population growth and economic development Mathus Model (1766-1834) – population will expand for as much as population can as food supplies permits - Simple Model A. Output grows at a linear rate o X = 2 t B.
Image of page 2
Image of page 3

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern