Inter-modal Network Externalities and Transport Development: Evidence from Roads, Canals, and Ports during the English Industrial Revolution
AbstractHow does the development of one transport mode influence the development of another? This paper uses time-series data to test whether inter-model network externalities influenced the development of road, canal, and port infrastructure in England from 1760 to 1830. The main finding is that road development had a positive effect on canal development. The results suggest that the option value of investing in a canal in the future diminished when nearby road improvements were initiated because there was less uncertainty about future profits from canal tolls. They also suggest a reinterpretation of road transport in the Industrial Revolution and point to the general importance of inter-modal network externalities.
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Bibliographic InfoPaper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 070812.
Length: 50 pages
Date of creation: Feb 2008
Date of revision:
Inter-modal network externalities; British transport; Industrial Revolution;
Other versions of this item:
- Dan Bogart, 2009. "Inter-Modal Network Externalities and Transport Development: Evidence from Roads, Canals, and Ports During the English Industrial Revolution," Networks and Spatial Economics, Springer, vol. 9(3), pages 309-338, September.
- R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
- R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
- N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-23 (All new papers)
- NEP-GEO-2008-02-23 (Economic Geography)
- NEP-HIS-2008-02-23 (Business, Economic & Financial History)
- NEP-NET-2008-02-23 (Network Economics)
- NEP-URE-2008-02-23 (Urban & Real Estate Economics)
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