1. A Malthusian Model of Population Change
Thanks to Luis Locay for introducing me to this model many years ago.

2. Malthus: A Formal Model
Ld=labor demand
Labor
(Pop.)
Ls=labor supply
Real Wage
CBR
CBR, CDR
NRI=0
CDR
Real Wage w*

3. Effects of Charity A Malthusian Perspective
Growth shifts
Ls curve up thus
reducing the
effective wage.
Labor
(Pop.)
Ls2 3 Ls
The effective
wage falls until
CBR=CDR, leaving
the level of living as
was prior to charity. Ld
Real Wage
CBR
CBR, CDR
CBR>CDR
=> Growth 2
Worker receives
w*-c from labor
and c in charity.
CDR
Real Wage
(w*-c) w*
(w*+c) 1 4

4. Malthus: The Plague Labor (Pop.) Real Wage CBR, CDR Real Wage w* w2*Ld
Labor
(Pop.) Ls 2
Ls2
Real Wage
CBR, CDR
CBR 1
CDR2
CDR
Real Wage w*
w2*

5. Technological AdvancesLd
Ld2
Labor
(Pop.) 1
Ls2 4 Ls
Real Wage
CBR
CBR, CDR
3 population grows
NRI=0
CDR
Real Wage w* w2
5: wage returns to w* 2