malthusandsolow(中级宏观经济学,香悦港中文大学).ppt

MalthusandSolow(中级宏观经济学,香港中文大学);The Malthusian Model of Economic Growth;Aggregate production function with constant returns to scale: (1) where is current aggregate output is current fixed supply of land is current labor There is no investment and no government spending Assume each person is willing to work at any wage and has one unit of labor to supply (a normalization), so that in Equation (1), is both the population and the labor input;Suppose population growth depends on the quantity of consumption per worker (2) where is the population in the future (next) period is an increasing function is aggregate consumption so that is current consumption per worker , mainly due to the fact that higher food consumption per worker reduces death rates through better nutrition; All goods produced are consumed, so C = Y. Hence, (3) Then use Equation (3) to substitute for C in Equation (2): (4) The constant-returns-to-scale property of the production function implies that After multiplying each side by N, Equation (4) can be rewritten as (5) ;Population growth depends on consumption per wo