practice 3 - gr 44 economic history

7/27/2019 Practice 3 - Gr 44 Economic history

1/14

Economic History

Practical class III

Markus [email protected]

Office 7.0.9(office hours Tuesday 10.45-12.45h or

on appointment via email)


2/14

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


3/14

Populationdeclines Populationincreases

+

-

Food pricesincrease

-

Malthus: Expansion

3

Real wagesdeclineNuptiality

-

Fertility -

+

Mortality

-

2


4/14

Populationincreases Populationdeclines

-

+

Food pricesdecline

+

Malthus: Decline

4

Real wagesincreaseNuptiality

+

Fertility +

-

Mortality

+

2


5/14

Population and agricultural intensification (Boserup)

PopulationIncreased

demand for food

+

+

55

More intensiveagriculturaltechnology

Increasedproduction

+

Increased supplyof labour

Increaseddemand for labour

+

+


6/14

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


7/14

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


8/14

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


9/14

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


10/14

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*


11/14

irth

rate,

death

rate

Birth rate

Death rate

Malthus according to Clark (empty)

11

B

Population

Income per persony*

N*


12/14

irth

rate,

dea

th

rate

Birth rate

Death rate

Malthus according to Clark (empty)

12

B

Population

Income per persony*

N*


13/14

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


14/14

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

practice 3 - gr 44 economic history

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