Abstract

Economic growth, nutrition and living standards in 19th century Lima: new estimates of welfare ratios using a linear programming model

Abstract: This study relies on a linear programming model to estimate welfare ratios in19th century Lima. By using a linear programming model, the food basketguarantees the intake of basic nutrients at the minimum cost. The subsistencecost includes the cost of food and other basic needs. The estimates show thatlow-skilled workers in Lima were able to cover their basic needs in 1800-1875.The results also show that living standards of low-skilled workers declinedduring the Guano Era. Living standards in Lima, however, compared favorably toseveral cities in Europe.