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Firm heterogeneity, technology adoption and the spatial distribution of population: Theory and measurement

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  • Alex W. Chernoff

Abstract

This paper develops and estimates an economic geography model featuring firm heterogeneity and technology adoption. I derive statistics that measure the effect of a new technology on productivity, welfare and the spatial distribution of the population. The empirical application estimates these effects using 19th‐century establishment‐level data on steam power in the Canadian manufacturing sector and township‐level population data. The results indicate that the introduction of steam power increased productivity by 22.9% and welfare by 4.9%. Comparing the model‐predicted and observed township population growth, I find that steam power accounts for 6.2% of the variation in observed population growth during this period. Hétérogénéité des entreprises, adoption de la technologie et répartition géographique de la population : théorie et évaluation. Cet article développe et évalue un modèle de géographie économique relatif à l hétérogénéité des entreprises et à l adoption de la technologie. Les statistiques qui en dérivent permettent de mesurer l incidence des nouvelles technologies sur la productivité, le bien‐être et la répartition géographique de la population. L application empirique évalue ces effets en utilisant des données relatives à la puissance thermique dans les entreprises manufacturières canadiennes au 19e siècle, et démographiques au niveau des cantons au cours de la même période. Les résultats suggèrent que l introduction de la puissance thermique a permis d augmenter la productivité de 22,9 % et le bien‐être de 4,9 %. En comparant l augmentation de la population estimée par le modèle et celle observée dans les cantons, je conclus que la puissance thermique compte pour 6,2 % de la variation de l augmentation observée au cours de la période.

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  • Alex W. Chernoff, 2021. "Firm heterogeneity, technology adoption and the spatial distribution of population: Theory and measurement," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 475-521, May.
  • Handle: RePEc:wly:canjec:v:54:y:2021:i:2:p:475-521
    DOI: 10.1111/caje.12511
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