CHUNYANG (JUSTIN) WANG
Department of Economics
1035 Heller Hall,
Email:wangx891@umn.edu
Phone: 612-625-6353
Personal Information
Age: 21 Sex: Male Nationality:
Undergraduate Studies
B.A., Economics,
Thesis Title: “Institutions, Demographic Transition, and Industrial Revolution: A Unified Theory”
Reference: Gregory Clark, Omer Moav, Henry Wan
Graduate Studies
PhD in Economics,
Honors and Awards
Summer Fellowship, Department of Economics,
Silverman Fellowship, Department of Economics,
Teaching Experience
Recitation Leader of Principles of Microeconomics Fall 2007
Conference Presentation
Econometric Society Far Eastern Meeting July 2006
Research
Institutions, Demographic Transition, and Industrial Revolution: A Unified Theory
Abstract: This paper explores the process of development from an epoch of Malthusian stagnation to a state of sustained economic growth. My paper unites the interests of economists, economic historians and demographers in studying the role of institutions improvement two centuries ago in launching the modern economic growth. The unified theory I develop captures many crucial phenomena emerging with industrial revolution, such as the rise of the saving rate, three phases accompanying demographic transition, human capital accumulation, bimodal distribution of income per capita. In addition, a question puzzling economic historians for a long time, that why industrial revolution was a European phenomenon, not happened in China, which was highly advanced in both technological level and industrial development as early as in the fourteenth century, is also solved as one of historical evidence to buttress my theory. In contrast to previous literature, I model this process with two novel factors, from the perspectives of both institutions and the value of children. Stripped to essentials it states that in the original development phase of human life, since there were no social security or public pensions, and capital market was highly imperfect, people always chose high fertility as an alternative way of saving, expecting material support from children in their old age. As institutions improved, physical capital began to be accumulated. Due to capital-skill complementarity, the accumulation of physical capital is high enough, to some extent, to induce the emergence of human capital. Then, modern era, dominated by human capital accumulation, comes. Historical evidence from ancient