Prices, Wages and Economic Change. The
Eduardo Martín Cuesta (CONICET), Ireneo Moras(UB and UCES) and Carlos Newland, (ESEADE)
The relationship between factor endowments, such as population, and relative priceshas been analyzed in classical works of economic history, since Adam Smith
. From the pointof view of economic theory relative prices are directly related to factors and the intensity of their use in production of various goods. Therefore, changes in the relative prices of differenttypes of goods are caused by fluctuations in population. In the classical studies on this subject by Phelps Brown and Hopkins
, prices and wages in England and Europe since the 13
areanalysed. They show how the fall in population provoked by the Black Death resulted in a
Carlos Newland began this work as fellow of the John Guggenheim Foundation. We aregrateful to Agustina Vence Conti for her help and to Peter Lindert and Hans Vogel for their comments.
See, for example, Newland, Carlos y Daniel Waissbein, “Una nota sobre Adam Smith,Ulloa y la economía de Buenos Aires”,
Revista de Historia Económica
, año I, nº 1, (1984),161-167.
Sheila Hopkins & H. Phelps Brown, “Builders’ Wage-Rates, Prices and Population: SomeFurther Evidences”,
News Series, vol. 23, no. 92 (1956), 296-314.3