Growth is a modern phenomenon

Commercialization of agriculture is much more easier

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Unformatted text preview: toms ! property rights that molded relationships of feudalism North & Thomas focus on “RELATIVE” PRICES ! ratio of land/labor The transition: What was the land- to- labor ratio in the later feudal era? Abundant land, scarce labor But at some point in the 15th century, population grows and this ratio increases Moving to efficient property rights Diminishing returns to labor once allt he productive land was taken up so more labor, but less productivity Land rising in value ! falling real wages Normally this means that standards of living would fall to the point where population would be wiped out by wars, famines, plagues (Malthusian checks) But instead, after the 16th century: Rising agricultural prices made it profitable to develop exclusive ownership of the land Falling labor costs created the basis for...
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This document was uploaded on 03/28/2014 for the course INAF 252 at Georgetown.

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