Get Agricultural Technical Progress and the Development of a PDF

By Dr. Thorsten Wichmann (auth.)

ISBN-10: 3642469949

ISBN-13: 9783642469947

ISBN-10: 3790809608

ISBN-13: 9783790809602

A two-sector version of a constructing nation which includes agriculture and is gifted. development and structural swap are mentioned in variations with exogenous in addition to endogenous technical development, algebraically and via numerical simulations. results from bearing in mind peculiarities of nutrition creation and intake are analyzed. those comprise know-how adoption in agriculture, Engel's legislation and a courting among the extent of nutrients and productivity.

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Extra resources for Agricultural Technical Progress and the Development of a Dual Economy

Sample text

1), the production function for food. 1) for CA into the utility 7. For derivation of constant-relative-risk-aversion utility cf. Aurilldis (1993, 179). 8. For an overview of this technique cf. Chiang(1992) or Kizmitn and Schwartz (1981). 9. The variable n is a bounded control since its value must be in the interval (0,1). 42 3. The Dual Economy Revisited function reduces the control variables to eM and n which simplifies the algebra. 4) [(~ (nL) a) L . t. ,-r] = MKI-a «I-n)L) a -LcM where p is the (positive) discount factor for future consumption and L, M, as well as A are functions of time.

Since percapita utility is weighted by the labor force in the integral, p must be greater).. to discount at all. 46 3. The Dual Economy Revisited development process, is characterized by n, the fraction of labor in agriculture. In the steady-state it has to be constant; it cannot increase or decrease forever at a constant rate. a, = MK a «I-n)L) . 10) yields: (I - a) MK-a «I - n) L) a =p - (I - a) [ (a - 1) y).. 1 a which is positive and smaller one by the transversality condition as is shown in appendix A2.

Even with similar rates of technical progress in both sectors, per capita consumption of widgets grows faster than per-capita consumption of food, and thus the share of manufactured goods will increase since a < 1 and A. > O. 3 and in footnote 1 above which, at the individual level, is also known as Engel's law. 13 However, it is not exactly the same since we have not derived a relative price between both goods and therefore total income is not defined in this model. 9) must satisfy the transversality = 0 which has not been shown so far.

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Agricultural Technical Progress and the Development of a Dual Economy by Dr. Thorsten Wichmann (auth.)


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