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Understanding Per‐Capita Income Growth In Preindustrial Europe

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  • Nils‐Petter Lagerlöf

Abstract

In a Malthusian environment, per‐capita incomes are stagnant, meaning they cannot exhibit sustained growth. However, they can still display volatility and persistence when hit by shocks. This article simulates a Malthusian model with realistic life‐cycle structure and stochastic and accelerating growth in land productivity. We find that differences across simulated economies are quantitatively similar to those found in recently compiled data over GDP per capita for several European countries before 1800. This speaks to the relevance of the Malthusian model for understanding preindustrial development in Europe, contrasting with contentions to the contrary in some of the existing literature.

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  • Nils‐Petter Lagerlöf, 2019. "Understanding Per‐Capita Income Growth In Preindustrial Europe," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(1), pages 219-240, February.
    • Handle: RePEc:wly:iecrev:v:60:y:2019:i:1:p:219-240
    DOI: 10.1111/iere.12350
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    1. James Foreman-Peck & Peng Zhou, 2021. "Fertility versus productivity: a model of growth with evolutionary equilibria," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 1073-1104, July.

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