This is the unique attracting steady state of the

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Unformatted text preview: eath rate. This is the unique attracting steady-state of the model. What happens if TFP improves from A to A0 > A? This means more output for any level of population. The initial level of population N now produces an income level y 0 > y . This leads to higher incomes and an excess of births over deaths since B > D (y 0 ). In consequence the population expands from N to N 0 until income per-capita is driven back down to where it was before. The same is true for other changes which have similar implications for the relationship between population and income, for instance good government. Low taxes and secure property rights. What determines income per-capita is the position of the birth and death schedules. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and28, 2009 Analysis: L September Historical 4 / 25 Comparative Statics – Technological Improvement D(y),B(y) B(y) D(y) y* y’ y y=Af(N) N* N’ y=A’f(N) Where A’>A N Pizzaro versus Atahualpa Malthusian model implies that even though the Spanish might have had better technology than the citizens of Tiwantinsuyu, there income per-capita ought to have di¤ered only according to their fer...
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This document was uploaded on 02/28/2014 for the course ECON 2328 at Harvard.

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