A System-Theoretic, Causal Interpretation of Unified Growth Theory

 

Notes

• Galor, Oded; Weil, David N. (2000). "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond" (PDF). American Economic Review. 90 (4): 806–828. doi:10.1257/aer.90.4.806.
• Unified Growth Theory  Forces operating in the distant past have shaped the growth process and determined the differential timing of transitions from stagnation to growth across the globe. For most of human history, technological progress expanded population size but had little effect on living standards. As technological progress gradually gathered momentum, through the mutually reinforcing interaction between population growth, adaptation, and innovation, the increasing importance of human capital in coping with a rapidly changing technological environment prompted parents to prioritize child quality over quantity, triggering the onset of the demographic transition. The decline in fertility freed the growth process from the counterbalancing effects of population growth and, along with advancements in knowledge and education, laid the foundation for sustained economic expansion and modern prosperity.