Lecture 6 - 02.11.2009 THEMALTHUSIANMODEL EC205.01 FALL2009...

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02.11.2009 1 THE MALTHUSIAN MODEL EC205.01 FALL 2009 ALPER 1 THE MALTHUSIAN GROWTH MODEL y Thomas Malthus (1798) Essay on the Principle of Population y Simple economic model y Main point: population growth would necessarily immiserate the world y Ultimately Malthus was proven to be wrong EC205.01 FALL 2009 ALPER 2 Claim y Population grows at a geometric rate (doubles every 30 40 years) y Food supplies could expand only at an arithmetic rate (due to diminishing returns to land (due to diminishing returns to land) EC205.01 FALL 2009 ALPER 3
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02.11.2009 2 Basic Idea: y Each additional member of the population would have less land to work y His/her marginal contribution to food production would be lower than the ones before him/her y Growth in food supplies < Growth in population y Per capita income ( per capita food production) declines y Result: poverty y Proposed solution: Moral restraint (birth control) EC205.01 FALL 2009 ALPER 4 Production function y Aggregate production function y Only food is produced y
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Lecture 6 - 02.11.2009 THEMALTHUSIANMODEL EC205.01 FALL2009...

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