For this purpose a centralized, closed economy is postulated. Gregory mankiw, matthew weinzierl, and danny yagan n. Growth rate of world population, growth rate of gross world product, and their linear trends. The concept of optimum population is a static concept inapplicable and irrelevant. Instead they have proposed the idea of optimum theory of population for many reasons.
Population increases faster in geometric progression than means of. Lead to the discussion on the tendency to assume that decisions reached individually will be the best decisions. Jan 24, 2018 may 03, 2020 theory of optimum population macroeconomics b com notes edurev is made by best teachers of b com. Population theory and the concept of optimum population. The mid point between over population and under population as is shown in the following diagram. A country is regarded as underpopulated when an increase in population would cause an increase in the per capita real income of the people. It is shown that the inclusion of those realistic demographic features slows down the optimal rate of population growth and increases the rate of consumption. Optimum population size general guide to personal and societies.
Notes on population theory grade 12 economics factors. Optimum theory of population pdf the term optimum population makes evident that a central ingredient is welfare economics. Article pdf available in environment development and sustainability. Rouf, bilah and rahman, 2007 history of optimum population theory the optimum theory of population was propounded by edwin cannan in his book wealth published in 1924 and popularized by robbins, dalton and carrsaunders. Optimum population definition of optimum population by. Indeed, the best way to approach simons work on population, environment and technology is to see it. The main features of the theory are briefly summarised here. The optimum theory is a dynamic one because over a period of time the per capita income may rise with the expansion in output due to improvements in knowledge, skill, capital equipment and other elements in production. The theory of demographic transition explains the effects of changes in birth rate and death rate on the growth rate of population. However, optimum population theory denies this argument. Can the goal of the greatest good for the greatest number be realized. Criticism of the theory the optimum theory of population is not free from defects.
Optimum population also ensures the highest standard of living in a country. The optimum theory of population was propounded by edwin cannan in his book wealth published in 1924 and popularised by robbins, dalton and carrsaunders. Conventional conclusions of welfare theory would continue to be. Theory and evidence quamrul ashrafy oded galorz march 26, 2008 abstract this paper empirically tests the existence of malthusian population dynamics in the preindustrial revolution era. Pdf is optimum currency area theory irrelevant for. A study of optimum population levelsa progress report pnas. This paper elaborates the problem of optimum saving first discussed by frank ramsey in 1928 4.
Transfer of medical technology but not wealth from mdcs to ldcs has allowed for fastest population growth in poorest areas creating even larger gaps between resources and population. The present theory and its shortcomings optimum theory of population in its wellknown formulation states that there is a certain size of population called the optimum population, which will result in a maximum manhour production1. Therefore, optimum population lies between two extremes, i. Optimum population is that level of population at which per capita output is the highest. Kenen, peter 1969, the theory of optimum currency areas. A newer school of philosophy of science, the modelbased view.
The economic welfare of a community is affected by policies that determine both the rate of capital accumulation and the rate of growth of population. The optimum theory of population was put forward as a reaction to the malthusian theory of population. Julian simon and the limits to growth neomalthusianism. His theory of population was christened as theory of surplus population. An economic analysis of optimum population size achieved. Malthus 17661834 malthus was an english clergyman who thought deeply about economic problems and is best known for his essay on the principle of population, from which this selection is taken. Optimal taxation in theory and practice 060109 final. This document is highly rated by b com students and has been viewed 307 times. Optimum population definition and meaning collins english. An eclectic view, in monetary problems of the international economy, ed. An optimum population size should be small enough to make it possible to provide the minimal physical ingredients of a decent life to everyone e. Gregory mankiw is professor of economics, matthew weinzierl is assistant professor of business administration, and danny yagan is a ph.
The proportion of working population to total population remains constant as the population of the country increases. Optimum theory of population optimum theory of population implies the ideal size of the population which a country try should possess on the basis of its resources and technology. We consider a case in which the probability of dying as well as the rate of participation in the labor force change with age. The theory suggests that, during the agricultural stage of development, resource surpluses beyond the maintenance of. Many economists developed the optimum population theory. Malthus 17661834, in his famous book essay on the principle of population 1798, stated that.
This paper examines the effects of introducing a variable dependency ratio in dasguptas 1969 model. The modern economists have rejected the malthusian theory of population on several grounds. Ol size of population is an optimum size population. May 06, 2011 thus optimum population is the size of population at which per capita income is the highest, at any given time. For example, if additional people produce new inventions which improve the lives of everyone, then this is a clear benefit of a larger population and must be weighed against any drawbacks. Optimum theory of population acceptance and criticism. Aims to check the natural growth of population is wrong. B the optimum level of population can be defined as a condition where individuals are getting highest possible per capita income, considering the available resources and given level of technology. The fist weakness of the optimum theory is that it is difficult to whether there is anything like an optimum population. The optimum growth rate for population under criticallevel utilitarianism article pdf available in journal of population economics 243. Maslows 1943, 1954 hierarchy of needs is a motivational theory in psychology comprising a five tier model of human needs, often depicted as hierarchical levels within a pyramid. Unlike most classical economists, malthus saw the possibility that gluts depressions could exist and. Given these assumptions, the optimum population is that ideal size of population which provides the maximum income per head. The first is the instrumental benefits brought about by the presence of additional people.
Mundell it is patently obvious that periodic balanceofpayments crises will remain an integral feature of the international economic system as long as fixed exchange rates and rigid wage and price levels prevent the international price system from fulfilling a natural role in the adjustment process. Adumerations to the idea that there must theoretically be some most desirable or optimum size of. Because the malthusian framework is basically economic, the population question has always. Optimum population theory apple b ugc net jrf academy. The concept of optimum population has been defined differently by robbins, carrsaunders and. Theoretically, there is for any given state of the arts and any given supply of available natural resources, together with a given supply of capital instruments and a given social organization, a certain size of population which can operate these resources to the best advantage and produce the largest per. Burch1 abstract the widespread opinion that demography is lacking in theory is based in part on a particular view of the nature of scientific theory, generally known as logical empiricism or positivism. Article the tragedy of the commons university of arizona. An examinition of meades objection to the individual utility criterion. The theory further states that any deviation from the optimum point produces either underpopulation or overpopulation. At the end of a thoughtful article on the future of nuclear war, wiesner and york 1 concluded that.
Hence, we could say that the optimum population theory is the direct result of a sharp reaction to the malthusian theory of population. The theory of demographic transition with criticisms. Optimum population means the ideal population relative to the natural resources, stock of capital equipment and state of technology. When the population of country is neither too large nor too small, it is called optimum population. Read this article to learn about the optimum theory of population. The critics have criticized the theory on the basis of the following grounds.
The optimum size of population at any point is time will depend on the size of the existing capital stock and the optimum rate of savings. A finite world can support only a finite population. Jun 25, 2015 demographic transitiontheoryoptimumpopulation1 1. Julian simon and the limits to growth neomalthusianism 74 not disposed to close my eyes to the evidence because it did not square with my original beliefs. Theory of optimum population macroeconomics b com notes. According to this theory, at first manhour production is growing. Some major criticism of optimum theory of population are as follow. The tragedy of the commons the population problem has no technical solution. Criticizing the approach of the malthusian theory of population, modern economists edwin cannan and carr saunders of london school of economics have. Unlike the malthusian theory, the optimum theory does not establish relationship between population growth and food supply.
The tragedy ofthe commons develops in this wayo pictura a pasture open to alt it is to be expected that each herds, man will to keep as many cattle as po. This was not a trendy subject in economics then nor is it now, but something about it fascinated. The word optimum means the best and the most desirable size of a countrys population. As the population of a country increases, the natural resources, the capital stock and state of technology remain unchanged. Malthusian theory of population claims that if population of a country keeps on increasing, it is going to be detrimental to the society. The national population policy nnp 2000 has the immediate objective of addressing the unmet needs of contraception, health infrastructure, health personal and. The optimum theory is a dynamic one because over a period of time the per capita income may rise with the expansion in output due to improvements in knowledge, skill, capital, equipment and other elements in production. Pdf sustainable welfare and optimum population size. Keynes interest in malthus population theory was expressed during this period in a. Malthusian population theory the malthusian population theory is the outcome of an easy title an essay on population written in 1798 by reverend thomas robert malthus, an anglican clergyman and a. Regarding optimum population by partha dasgupta university of cambridge july 2004 revised. The dependency ratio and optimum population growth. The concept of an optimum, or ideal, size of population concerns both theory and policy. Population theory and the concept of optimum population 205 such an equation can be one in which the rate of population growth is a function of the level of per capita income i dp, yt pr dt g pt as indicated by curve p in fig.
The theory mainly focuses on optimum concept ofeconomic theory and neglects the cause of change in population. Optimum population can be defined as the size and structure of population which maximises the output per head of the economy and is thus most conducive to the betterment of the wealth and welfare of a society. What links here related changes upload file special pages permanent link page information. Population increases faster in geometric progression than means of subsistence in arithmetical progression. The tragedy of the commons garrett hardin at the end of a thoughtful article on the future of nuclear war. The optimum theory of population is an important theory of population stated by modern economists like edwin cannan, dalton and others. November 2004 this essay has been prepared for a symposium on population and political theory, being edited by james fishkin and robert goodin in the journal of political philosophy. The optimum population size is achieved when the net resultant e ect of all these channels leaves citizens welfare at the maximum. Economic theory of optimal population pp 116 cite as.
Optimum population has been defined as that size of population enabling per capita output of the maximum orders accompanied by the highest possible standards of living under a given set of economic and technological conditions. The optimum theory is based on two important assumptions. Wolfe adumbrations to the idea that there must theoretically be some most desirable or optimum size of population are to be met with in the literature of economics and social philosophy as far back as sismondi and richard cantillon. Demography is the statistical study of human populations. The optimum size of population at any point is time will depend on the size of the existing capi. Optimum growth in an aggregative model of capital accumulation 1. Overpopulation, under population, optimum population. Optimum population, the malthusian population theory and. Indeed the idea is fairly explicit in platos laws, where the ideal. In this diagram population is measured along ox and output along oy.
Karl marx 18181893 was a german philosopher and founder of modern communism. Dolan, demographic transition refers to a population cycle that begins with a fall in the death rate, continues with a phase of rapid population growth and concludes with a decline in the birth rate. Optimum population definition of optimum population by the. The optimum population is, then, less than the maximum.
A theory of optimum currency areas1 san francisco state. Optimum population, the malthusian population theory and the. The theory further states that any deviation from the optimum point produces either under population or over population. The benefits of increased population can be split into two categories. The optimum theory of population provides more detailed analysis as it considers over and under population and brings out the evils of both. There is no evidence about the optimum population level in any country. The dependency ratio and optimum population growth springerlink. Rather, it was my beliefs that had to change simon 1997, xxviii. The optimum population is a concept where the human population is able to balance. Malthusian population theory the malthusian population theory is the outcome of an easy title an essay on population written in 1798 by reverend thomas robert malthus, an anglican clergyman and a well known political economist.668 1075 1368 688 367 949 212 885 790 426 943 535 1021 148 247 774 1377 1478 236 687 1436 11 807 1107 558 635 31 646 884 940 622 340 1067 806 301 954 1142 393 1165 1283 417 309 690