kremer_handout

kremer_handout - Handout for Kremer (1993) by Hakan...

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Handout for Kremer (1993) by Hakan Yilmazkuday 1 POPULATION GROWTH AND TECHNOLOGICAL CHANGE: ONE MILLION B.C. TO 1990 MICHAEL KREMER This paper combines the following two findings in the literature: 1. The size of population is proportional to the growth rate of technology. This is claimed by o Kuznets (1960) and Simon (1977,1981) – A higher population means more potential inventors . o Endogenous growth literature – Aghion and Howitt (1992), Gorssman and Helpman (1991) – The size of population spurs technological change. 2. Population is limited by the available technology, so that growth rate of population is proportional to the growth rate of technology. This is assumed by o Malthus (1978) – In the original paper, Malthus (1798) mentions about the state of food production (as technology) In sum, this paper claims: And by using this, the paper states that the size of population is proportional to the growth of population: Size of Population Growth of Technology Growth of Population Size of Population Growth of Population
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2 A SIMPLE MODEL Assume that the output is given by YA p T α = 1 (1) where A is the level of technology, p is the population and T is the land. After normalizing the land to one 1 , at the steady-state, we have /( ) y p A ⎛⎞ ⎜⎟ ⎝⎠ = 11 (2) where p is the steady state level of population and y is the steady state level of per capita income. The growth rate of technology is given by A pg A = ± (3) where g is the research productivity. Thus, growth rate of technology is proportional to the level of population. Here, we have the assumption that the research productivity is independent of the population size. By taking the logarithm of equation (2), and differentiate with respect to time, we obtain p A p A = 1 1 ± ± (4) Therefore, the growth rate of population is proportional to the growth rate of technology. By substituting (3) into (4), we get pg p p = 1 ± (5)
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This note was uploaded on 01/11/2012 for the course ECO 601 taught by Professor Hakanyilmazkuday during the Fall '11 term at FIU.

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kremer_handout - Handout for Kremer (1993) by Hakan...

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