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Railroads and Micro-regional Growth in Prussia

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  • Hornung, Erik

    (Ifo Institute)

Abstract

We study the e ect of railroad access on urban population growth. Using GIS techniques, we match triennial population data for roughly 1000 cities in nineteenth-century Prussia to georeferenced maps of the German railroad network. We nd positive short- and long-term e ects of having a station on urban growth for di erent periods during 1840-1871. Causal e ects of (potentially endogenous) railroad access on city growth are identi ed using instrumentalvariable and xed-e ects estimation techniques. Our instrument identi es exogenous variation in railroad access by constructing straight-line corridors between terminal stations. Counterfactual models using pre-railroad growth yield no evidence in support of the hypothesis that railroads appeared as a consequence of a previous growth spurt.

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Bibliographic Info

Paper provided by Competitive Advantage in the Global Economy (CAGE) in its series CAGE Online Working Paper Series with number 79.

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Date of creation: 2012
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Handle: RePEc:cge:warwcg:79

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Keywords: Railroads; Technological Di usion; City Growth; Prussian Economic History;

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  1. Francesco Cinnirella & Erik Hornung, 2011. "Landownership Concentration and the Expansion of Education," Working Papers 0010, European Historical Economics Society (EHES).
  2. Nathan Nunn & Nancy Qian, 2011. "The Potato's Contribution to Population and Urbanization: Evidence From A Historical Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 593-650.
  3. Howard Bodenhorn & David Cuberes, 2010. "Financial Development and City Growth: Evidence from Northeastern American Cities, 1790-1870," NBER Working Papers 15997, National Bureau of Economic Research, Inc.
  4. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 775-805, 05.
  5. Jeremy Atack & Michael R. Haines & Robert A. Margo, 2008. "Railroads and the Rise of the Factory: Evidence for the United States, 1850-70," NBER Working Papers 14410, National Bureau of Economic Research, Inc.
  6. Fremdling, Rainer, 1977. "Railroads and German Economic Growth: A Leading Sector Analysis with a Comparison to the United States and Great Britain," The Journal of Economic History, Cambridge University Press, vol. 37(03), pages 583-604, September.
  7. Wolfgang Keller & Carol H. Shiue, 2008. "Institutions, Technology, and Trade," NBER Working Papers 13913, National Bureau of Economic Research, Inc.
  8. Jeremy Atack & Fred Bateman & Michael Haines & Robert A. Margo, 2009. "Did Railroads Induce Or Follow Economic Growth? Urbanization And Population Growth In The American Midwest, 1850-60," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-178, Boston University - Department of Economics.
  9. Ahlfeldt, Gabriel M. & Wendland, Nicolai, 2011. "Fifty years of urban accessibility: The impact of the urban railway network on the land gradient in Berlin 1890-1936," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 77-88, March.
  10. Abhijit Banerjee & Esther Duflo & Nancy Qian, 2012. "On the Road: Access to Transportation Infrastructure and Economic Growth in China," NBER Working Papers 17897, National Bureau of Economic Research, Inc.
  11. Florian Ploeckl, 2011. "Towns (and Villages); Definitions and Implications in a Historical Setting," Economics Series Working Papers 536, University of Oxford, Department of Economics.
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Cited by:
  1. Stefan Arent, 2012. "Expectations and Saving Behavior: An Empirical Analysis," Ifo Working Paper Series Ifo Working Paper No. 128, Ifo Institute for Economic Research at the University of Munich.

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