Consider a country where output is produced using land

and labour according to a neoclassical production function. Land is in xed supply.

Make the Malthusian assumption that population growth increases with consump-

tion per person (equal to income per person). Explain why steps to reduce the

population growth rate (all else equal) would lead to a rise in income and consump-

tion per person. Assuming that rents are equal to the marginal product of land,

explain whether landowners would be in favour of these steps to reduce population

growth.