Growth Off the Rails: Aggregate Productivity Growth in Distorted Economies

S-Tier
Journal: Journal of Political Economy
Year: 2024
Volume: 132
Issue: 11
Pages: 3547 - 3602

Authors (2)

Richard Hornbeck (University of Chicago) Martin Rotemberg (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine aggregate economic gains in the United States as the railroad network expanded in the nineteenth century. Using data from the Census of Manufactures, we estimate relative increases in county aggregate productivity from relative increases in county market access. In general equilibrium, we find that the railroads substantially increased national aggregate productivity. By accounting for input distortions, we estimate much larger aggregate economic gains from the railroads than previous estimates. Our estimates highlight how broadly-used infrastructure or technologies can have much larger economic impacts when there are inefficiencies in the economy.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/730548
Journal Field
General
Author Count
2
Added to Database
2026-02-02