IDEAS home Printed from https://ideas.repec.org/p/hhs/sdueko/2013_010.html
   My bibliography  Save this paper

Rural Infrastructure and Agricultural Market Integration in the United States: A long run perspective

Author

Listed:
  • Sharp, Paul

    () (Department of Business and Economics)

  • Uebele, Martin

    () (Faculty of Arts)

Abstract

In recent years, there has been an increasing focus by policymakers on rural infrastructure in the United States, including most recently tax credits to encourage investment. Previous work has documented the importance of railroad expansion for nineteenth century development, and demonstrated that policy failure led to the disintegration of agricultural markets in the interwar period, with potentially serious macroeconomic consequences. Using a database of average prices by state of seven agricultural products for the period ca. 1870-2010, we extend this analysis to the postSecond World War period. We find a striking disintegration in recent decades, as measured by price dispersion, which we attribute to decades of underinvestment, particularly in railroads. We thus provide strong support for the present policy focus on investment in rural infrastructure.

Suggested Citation

  • Sharp, Paul & Uebele, Martin, 2013. "Rural Infrastructure and Agricultural Market Integration in the United States: A long run perspective," Discussion Papers of Business and Economics 10/2013, University of Southern Denmark, Department of Business and Economics.
  • Handle: RePEc:hhs:sdueko:2013_010
    as

    Download full text from publisher

    File URL: https://www.sdu.dk/-/media/files/om_sdu/institutter/ivoe/disc_papers/disc_2013/dpbe10_2013.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Uebele, Martin, 2011. "National and international market integration in the 19th century: Evidence from comovement," Explorations in Economic History, Elsevier, vol. 48(2), pages 226-242, April.
    2. MarioJ. Crucini & Mototsugu Shintani & Takayuki Tsuruga, 2010. "The Law of One Price without the Border: The Role of Distance versus Sticky Prices," Economic Journal, Royal Economic Society, vol. 120(544), pages 462-480, May.
    3. Dimitri, Carolyn & Effland, Anne & Conklin, Neilson C., 2005. "The 20th Century Transformation of U.S. Agriculture and Farm Policy," Economic Information Bulletin 59390, United States Department of Agriculture, Economic Research Service.
    4. Sharp, Paul & Weisdorf, Jacob, 2013. "Globalization revisited: Market integration and the wheat trade between North America and Britain from the eighteenth century," Explorations in Economic History, Elsevier, vol. 50(1), pages 88-98.
    5. Wolfram Schlenker & Michael J. Roberts, 2006. "Nonlinear Effects of Weather on Corn Yields," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 391-398.
    6. Giovanni Federico & Paul Sharp, 2013. "The cost of railroad regulation: the disintegration of American agricultural markets in the interwar period," Economic History Review, Economic History Society, vol. 66(4), pages 1017-1038, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Clymer, Neil, 2015. "Aging U.S. Infrastructure," 商学討究 (Shogaku Tokyu), Otaru University of Commerce, vol. 66(1), pages 295-321.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chilosi, David & Federico, Giovanni, 2015. "Early globalizations: The integration of Asia in the world economy, 1800–1938," Explorations in Economic History, Elsevier, vol. 57(C), pages 1-18.
    2. Cassidy, Daniel & Hanley, Nick, 2020. "Regional market integration and the emergence of a Scottish national grain market," eabh Papers 20-05, The European Association for Banking and Financial History (EABH).
    3. Alexander Pütz & Pierre L. Siklos & Christoph Sulewski, 2019. "“Who pays the piper calls the tune” – Networks and transaction costs in commodity markets," CQE Working Papers 8819, Center for Quantitative Economics (CQE), University of Muenster.
    4. Martin T. Bohl & Alexander Pütz & Pierre L. Siklos & Christoph Sulewski, 2021. "Information transmission under increasing political tensions—Evidence from the Berlin Produce Exchange 1887–1896," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 41(2), pages 226-244, February.
    5. John E. Murray & Javier Silvestre, 2020. "Integration in European coal markets, 1833–1913," Economic History Review, Economic History Society, vol. 73(3), pages 668-702, August.
    6. Alexander Klein & Karl Gunnar Persson & Paul Sharp, 2020. "Populism and the First Wave of Globalization: Evidence from the 1892 US Presidential Election," Working Papers 0191, European Historical Economics Society (EHES).
    7. Kazuko Kano & Takashi Kano & Kazutaka Takechi, 2012. "Nonparametric Identification and Estimation of the Number of Components in Multivariate Mixtures," Global COE Hi-Stat Discussion Paper Series gd12-246, Institute of Economic Research, Hitotsubashi University.
    8. Kalemli-Özcan, Sebnem & Nikolsko–Rzhevskyy, Alex & Kwak, Jun Hee, 2020. "Does trade cause capital to flow? Evidence from historical rainfall," Journal of Development Economics, Elsevier, vol. 147(C).
    9. Janet Currie & Joshua Graff Zivin & Katherine Meckel & Matthew Neidell & Wolfram Schlenker, 2013. "Something in the water: contaminated drinking water and infant health," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(3), pages 791-810, August.
    10. Coleman, Jane A. & Shaik, Saleem, 2009. "Time-Varying Estimation of Crop Insurance Program in Altering North Dakota Farm Economic Structure," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49516, Agricultural and Applied Economics Association.
    11. Jesse B. Tack & David Ubilava, 2015. "Climate and agricultural risk: measuring the effect of ENSO on U.S. crop insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 245-257, March.
    12. He, Xi, 2018. "Bigger Farms and Bigger Food Firms-The Agricultural Origin of Industrial Concentration in the Food Sector," 2018 Annual Meeting, August 5-7, Washington, D.C. 274206, Agricultural and Applied Economics Association.
    13. Kano, Kazuko & Kano, Takashi & Takechi, Kazutaka, 2013. "Exaggerated death of distance: Revisiting distance effects on regional price dispersions," Journal of International Economics, Elsevier, vol. 90(2), pages 403-413.
    14. Velasco-Fernández, Raúl & Dunlop, Tessa & Giampietro, Mario, 2020. "Fallacies of energy efficiency indicators: Recognizing the complexity of the metabolic pattern of the economy," Energy Policy, Elsevier, vol. 137(C).
    15. Scott A. Carson, 2017. "Assessing Cumulative Net Nutrition and the Transition from 19th Century Bound to Free-Labor by Ethnic Status," CESifo Working Paper Series 6813, CESifo.
    16. Rachel M. Shellabarger & Rachel C. Voss & Monika Egerer & Shun-Nan Chiang, 2019. "Challenging the urban–rural dichotomy in agri-food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(1), pages 91-103, March.
    17. Brenton, Paul & Portugal-Perez, Alberto & Regolo, Julie, 2014. "Food prices, road infrastructure, and market integration in Central and Eastern Africa," Policy Research Working Paper Series 7003, The World Bank.
    18. Meyer, Kevin & Keiser, David A., 2016. "Adapting to Climate Change Through Tile Drainage: A Structural Ricardian Analysis," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235932, Agricultural and Applied Economics Association.
    19. A. Nchake Mamello & Edwards Lawrence & N. Kaya Tresor, 2017. "Working Paper 272 - Price effects of borders between Lesotho and South Africa," Working Paper Series 2389, African Development Bank.
    20. Jeremy G. Weber & Conor Wall & Jason Brown & Tom Hertz, 2015. "Crop Prices, Agricultural Revenues, and the Rural Economy," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 459-476.

    More about this item

    Keywords

    United States; agriculture; market integration; rural infrastructure;
    All these keywords.

    JEL classification:

    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:sdueko:2013_010. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lene Holbæk). General contact details of provider: https://edirc.repec.org/data/okioudk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.