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RAILROAD INFRASTRUCTURE INVESTMENTS AND ECONOMIC DEVELOPMENT IN THE ANTEBELLUM UNITED STATES
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RAILROAD INFRASTRUCTURE INVESTMENTS AND ECONOMIC DEVELOPMENT IN THE ANTEBELLUM UNITED STATES

논문 기본 정보

자료유형
학술저널
저자정보
RUI MANUEL PEREIRA (College of William and Mary) ALFREDO MARVÃO PEREIRA (College of William and Mary) WILLIAM J. HAUSMAN (College of William and Mary)
저널정보
중앙대학교 경제연구소 Journal of Economic Development Journal of Economic Development 제42권 제3호 KCI등재
발행연도
2017.9
수록면
1 - 16 (16page)
DOI
10.35866/caujed.2017.42.3.001

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RAILROAD INFRASTRUCTURE INVESTMENTS AND ECONOMIC DEVELOPMENT IN THE ANTEBELLUM UNITED STATES
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초록· 키워드

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We measure the overall impact of railroad investment on economic development in the antebellum period in the United States using a vector autoregressive approach. Our results can be summarized as follows. First, we find bidirectional causality between railroad infrastructure investment and GDP. Second, we estimate a marginal product of $4.2 for railroad investment which corresponds to a 15.5% rate of return when considering a 10?year lifetime for railroad capital. While about two-thirds of this effect stems from the supply side, short run demand side effects also are substantial. Third, given the low effective tax rates practiced in the 1830s and the magnitude of the effects of railroad investment we estimate, it is very likely that these investments were not self-financing and may, therefore, have contributed to the high levels of public indebtedness observed in the period.

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