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Agricultural Improvements and Access to Rail Transportation: The American Midwest as a Test Case, 1850-1860

  • Jeremy Atack
  • Robert A. Margo

During the 1850s, land in U.S. farms surged by more than 100 million acres while almost 50 million acres of land were transformed from their raw, natural state into productive farmland. The time and expense of transforming this land into a productive resource represented a significant fraction of domestic capital formation at the time and was an important contributor to American economic growth. Even more impressive, however, was the fact that almost half of these total net additions to cropland occurred in just seven Midwestern states which comprised barely less than one-eighth of the land area of the country at that time. Using a new GIS-based transportation database linked to county-level census, we estimate that at least a quarter (and possibly two-thirds or more) of this increase can be linked directly to the coming of the railroad to the region. Farmers responded to the shrinking transportation wedge and rising revenue productivity by rapidly expanding the area under cultivation and these changes, in turn, drove rising farm and land values.

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File URL: http://www.nber.org/papers/w15520.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15520.

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Date of creation: Nov 2009
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Publication status: published as (with Margo), “ The Impact of Access to Rail Transportation on Agricultural Improvement: The American Midwest as a Test Case, 1850 - 1860 ,” Journal of Transportation and Land Use , 4: 2 (2011).
Handle: RePEc:nbr:nberwo:15520
Note: DAE
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  1. 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," NBER Working Papers 14640, National Bureau of Economic Research, Inc.
  2. Craig, Lee A & Palmquist, Raymond B & Weiss, Thomas, 1998. "Transportation Improvements and Land Values in the Antebellum United States: A Hedonic Approach," The Journal of Real Estate Finance and Economics, Springer, vol. 16(2), pages 173-89, March.
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