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From Neolithic Revolution to Industrialization

Chu, Angus C. (2022): From Neolithic Revolution to Industrialization.

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Abstract

This study develops a simple economic model for the evolution of the human society from hunting-gathering to agriculture and then an industrial economy. The human society evolves across these three stages as population grows. However, under endogenous population growth, the population may stop growing and never reach the next threshold. If it fails to reach the first threshold, then the population remains as hunter-gatherers. If it reaches the first threshold, then an agricultural society emerges. The Neolithic Revolution occurs under a low fertility cost, strong fertility preference, high agricultural productivity, and high labor supply. Then, if the population fails to reach the next threshold, the economy remains in an agricultural Malthusian trap and does not experience industrialization. Industrialization occurs under a low fertility cost, strong fertility preference, high agricultural productivity, high labor supply, a large amount of agricultural land, high industrial productivity, and a low fixed cost of industrial production.

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