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Unformatted text preview: eath rate. This is the unique attracting steady-state of
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
James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and28, 2009 Analysis: L
4 / 25 Comparative Statics – Technological Improvement
D(y),B(y) B(y) D(y)
y* y’ y y=Af(N)
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
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This document was uploaded on 02/28/2014 for the course ECON 2328 at Harvard.
- Fall '09