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Session 2, Screenshot 2026-01-21 at 09.26.26, Screenshot 2026-01-21 at 09…
Session 2
Great divergence P
Malthusian Epoch
Malthus
fixed production
population raisess to certail level of GDP/capita and then levels
Malthusian Trap
we cannot raise income per capita because we have fixed production when GDP raises population raises and then GDP/capita decreases
simlilar to carrying capacity with fields for cows
Econ modeling of this epoch
negative realtionship betwen death rate and income/capita
positive correlation between birth rage and income per capita
to the left population is shrinking and to the right its growing
Econ Assumption of the MM
Total output is moslty fixed
agricutlutal production = overall gdp
These three factors make population fixed on production level and therefore fix GDP per capita
Malthusian trap
health tech technology
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agricutlural technology
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Modern Epoch
agrictultural production increases
families start having less children
relatively low population growht
INCOMEPER CAPITA RISES
becomes largely urban
Post Malthusian Epoch
agriucultuural productivitu increases
demographic behaviour changes
population boon and little per income capita growth
becomes partially urban
Factors of change
demographic transition
manufacturing (usually textiles)
urbanizaion
edcuation
GROWTH
technological change increases demand for human capital
urbaniaztion
more earning oppurtunities for wonem
this by itself increases GDP per capita
also increases the oppurtunity cost of hanving children
fewer better educated children
The Demographic Window of Oppuritunity
temporary increase in young population
the dependency ratio lowers
adjustead DR
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globally this is the post malthusian worls - population boom
more workers, more production
more savings more investment
also because you have less children and so you have to save
