ECON 334 Lecture Notes - Lecture 20: Comparative Statics, Diminishing Returns, Malthusian Trap
Document Summary
The malthusian equilibrium: episodes of population growth were temporary. Eventually population stagnated, and the number of surviving children per woman reverted to the replacement rate: human population might have been about 0. 1 million people in 130,000 bc. In 1800, it was 770 million: this implies an average rate of 2. 005 surviving children per woman. Useful facts and definitions: birth rate = number of births per thousand people per year, they vary greatly across societies, the maximum biologically possible is about 60, some african countries today reach 55. Pre-industrial england managed to stay below 30: death rate = number of deaths per thousand people per year. Assumptions of the malthusian model: the birth rate of each society increases with material living standards, the death rate of each society decreases with material living standards, material living standards decrease as population increases. Comparative statics: increase in the birth rate schedule. Comparative statics: decrease in the death rate schedule.
