World Economic History: Introduction

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Presentation transcript:

World Economic History: Introduction October 1, 2007

Growth, historically

Introduction The Malthusian trap The Industrial Revolution The Great Divergence

Life expectancy (years) - today & back then

Diverging

The Malthusian economy

The Malthusian trap Who was Malthus? The model The trap

The 3 assumptions Each society has a birth rate (B) that increases with material living standards The death rate (D) declines as living standards increase Material living standards decline as population increases Population Income per capita B-D

Surviving children per woman, pre-modern

Life expectancy and death rates

Long-run equilibrium in the Malthusian economy

Revealed technological advance

Virtues and Vices in the Malthusian model