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1、CHAPTERFIVETheIndustrialRevolutionGregoryClarkUniversityofCalifornia,Davis,CA95616,USAAbstractTheIndustrialRevolutiondecisivelychangedeconomywideproductivitygrowthrates.Forsuccessfuleconomies,measurede?ciencygrowthratesincreasedfromclosetozerotocloseto1%peryearinthebli
2、nkofaneye,intermsofthelonghistoryofhumanity,seeminglywithin50yearsof1800inEngland.YettheIndustrialRevolutionhasde?edsimpleeconomicexplanationsormodeling.ThispaperseekstosetouttheempiricalparametersoftheIndustrialRevolutionthatanyeconomictheorymustencompass,andillustrat
3、ewhythismakesexplainingtheIndustrialRevolutionsodi?cultwithinthecontextofstandardeconomicmodelsandnarratives.KeywordsIndustrialrevolution,Economicgrowth,GrowththeoryJELClassi?cationCodesN13,O33,O43,O475.1.INTRODUCTIONTheeconomichistoryoftheworldissurprisinglysimple.Itc
4、anbepresentedinonediagram,asinFigure5.1below.Before1800,incomepercapitaforallthesocietiesweobserve?uctuated.Thereweregoodandbadperiods.Buttherewasnoupwardtrend.Thegreatspanofhumanhistory—fromthearrivalofanatomicallymodernmantoConfucius,Plato,Aristotle,Michelangelo,Shak
5、espeare,Beethoven,andallthewaytoJaneAusten—waslivedinsocietiescaughtintheMalthusiantrap.JaneAustenmaywriteaboutre?nedconversationoverteaservedinChinacups,butforthemassofpeople,aslateas1813,materialconditionswerenobetterthantheirancestorsoftheAfricansavannah.TheDarcyswe
6、refew,thepoorplentiful.1Around1780cametheIndustrialRevolutioninEngland.Incomespercapitabeganasustainedgrowthinafavoredgroupofcountriesaround1820.Inthelast200years,inthemostfortunatecountries,realincomespercapitarose10–15-fold.Themodernworldwasborn.TheIndustrialRevoluti
7、onthusrepresentsthesinglegreateventofworldeconomichistory,thechangebetweentwofundamentallydifferenteconomicsystems.1Clark(2007)extensivelyreviewstheevidenceforthisassertion.HandbookofEconomicGrowth,Volume2A?2014ElsevierB.V.ISSN1574-0684,http://dx.doi.org/10.1016/B978-0
8、-444-53538-2.00005-8Allrightsreserved.217218GregoryClark1210GreatDivergence864IndustrialRevolutionIncomeperperson(180
