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Economic History
Practical class III
Markus [email protected]
Office 7.0.9(office hours Tuesday 10.45-12.45h or
on appointment via email)
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Text presentation groups North and Thomas (29-9): Mathias Welti, Michael Fischer, Sahra
Schnekker, Yan Bai, Pathriz Monazam
Wrigley (6-10): Esther Prez Tahoces, Diego Martnez Arevalo, Carloslvarez Benito ORourke/Williamson (27-10): Piedad Prez-Minguez Pi, Javier Castillo,
Alba Pea e son r g - ; sorry or e wrong n orma on n , w
update it soon): Clara Corts, Ana Ferrn, Claudia Calleja USA II (Chandler, 10-11): Alejandro Forte, Pablo Gonzlez Vallejo,
Gonzalo Leiva, Mario Franco Garca Temin (24 nov): Amaia Bueno, Beln Combarros, Elena Delmas, Marta
Camarero Great Depression II (Eichengreen, ORourke et. al, 24 nov): Mnica del
Pozo, Quianyun Shi, Clara Serra, Beatriz Macazaga Eichengreen/Temin (1 dec): Iigo Azpeitia, Almudena de Grado, Virginia
Moneo, Sara Jimnez Olbea Students with no group: Carole Klipfel, Sanne van Opstal 2
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Populationdeclines Populationincreases
+
-
Food pricesincrease
-
Malthus: Expansion
3
Real wagesdeclineNuptiality
-
Fertility -
+
Mortality
-
2
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Populationincreases Populationdeclines
-
+
Food pricesdecline
+
Malthus: Decline
4
Real wagesincreaseNuptiality
+
Fertility +
-
Mortality
+
2
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Population and agricultural intensification (Boserup)
PopulationIncreased
demand for food
+
+
55
More intensiveagriculturaltechnology
Increasedproduction
+
Increased supplyof labour
Increaseddemand for labour
+
+
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Perssons synthesis
Population
growth ++Diminishing marginal
returnsMalthusian mechanism
Divison of labour(Smithian mechanism)
Learning-by-doing basedmethodological changewhich might be linked to
population size (for examplein the Boserup way)
+
Income per capita/Real wages
+
+
-
6
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Malthus according to Clark
irth
rate,
death
rate
Y*= subsistenceincome, allows the
population toreproduce itself,at higher incomelevels, populationincreases
7
B
Population
Income per persony0y*
N*
N0
rates rise anddeath rates fall.If populationincreases, incomefalls, which
reduces birthrates, increasesdeath rates andleads society backto the equilibriumpopulation
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What if the birth rate schedule increases?
irth
rate,
death
rate
Birth rate0
Birth rate1
If the birth ratescheduleincreases,for any income
8
B
Population
Income per persony0
*
y1*
N0*N1*
births, so incomeper person inequilibriumdecreases (if thatis sustainable).
On the otherhand, societiescan increaseincome levels bylimiting fertility
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What if the death rate schedule changes?
irth
rate,
death
rate
Birth rate
Death rate0
If the death ratescheduledecreases,
for any incomethere will lessdeaths; incomeper person inequilibrium
B
Population
Income per persony0
*
y1*
N0*N1*
Death rate1ecreases a
is sustainable).On the otherhand, everythingthat increasesdeath rates (war,
disorder,desease), ishelpful for livingstandards, whileimproving sanitaryconditions isharmful in amaterial sense
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What if technology improves?
irth
rate,
death
rate
Better technologymeans that the
same ressourcesproduce more,and make moreconsumptionpossible. But,
Birth rate
Death rate
10
B
Population
Income per persony0y*
income meansmore births, andmore birthdepress income,so that in the long
run, onlypopulationincreases(extensive growth)
N0*
N1*
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irth
rate,
death
rate
Birth rate
Death rate
Malthus according to Clark (empty)
11
B
Population
Income per persony*
N*
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irth
rate,
dea
th
rate
Birth rate
Death rate
Malthus according to Clark (empty)
12
B
Population
Income per persony*
N*
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The Malthusian model (exercises) The triumph of a natalist religious movement makes that women
give birth to a larger number of children. How does this affect theincome per person, the size of the population and life expectancy?
Explain which effects would have an isolated improvement inproduction technology, which makes workers more productive, on
, .
The king imposes a (non-redistributive) flat tax of 20 percent on allincome per person. Which effect does this have on income perperson, population size and life expectancy? (Assume that he putsthe revenue he receives into his treasury to have a bath in gold
every morning.) Due to for example a rapid surge in international trade port cities
evolve in a country, increasing the urbanisation rate. However,sanitation in these cities is bad, which makes death rates higher
there. What might be the effect on average live expectancy, incomeper person and population size in that country? 13
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Homework North & Thomas (parts I&II!) Answer individually the following questions (150+200 words=not more than
350!), send the answer to me by email before next practical class or hand in on
paper. Members of next weeks group do not have to hand in this assignment!I) (EVERYBODY HAS TO ANSWER THIS, EXCEPT THE PRESENTERS)How do North&Thomas define economic growth? Name some of the maindeterminants according to previous authors. What is Norths and Thomass
II) (ONLY ANSWER A, B, C or D according to your choice/commitment)A) Why can according to North & Thomas economically/socially inefficient
institutional arrangements come into being and be persistent?B) Under which historical circumstances did the feudal system and the manors
emerge (which problems did they solve)? Name its central features.C) Which factors of production do lords (seores) and villagers (vassals)
represent? How did their relative power evolve between the 10th and the14th Century?
D) How did the formation of markets affect the importance of the manor? Whichgovernance structure replaces the manor little by little and why? 14
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