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 in 19th century Lima. By using a linear programming model, the food basket guarantees the intake of basic nutrients at the minimum cost. The subsistence cost includes the cost of food and other basic needs. The estimates show that low-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 declined during the Guano Era. Living standards in Lima, however, compared favorably to several cities in Europe.