Economic History Association

62nd Annual Meeting
October 11 - 13, 2002
"Private versus Public Institutions"

abstracts



Session 8B
Sunday, 8:30-10:15AM

New Technologies and Productivity Growth in the Twentieth Century


“Adoption of General Purpose Technologies:  Understanding Adoption Patterns in the Electrification of U.S. Manufacturing, 1880-1930”
Brent Goldfarb
Abstract:  Past study of the diffusion of pervasive technologies, such as the electric motor, has failed to take into account the varied technological challenges in their application. In a careful examination of the adoption patterns of the electric motor in three industries, automobile manufacture, printing and paper-making, I establish that the technological difficulty of  adapting the motor to particular tasks has central explanatory power in the order of adoption. I also find significant variation in the level of difficulty in developing and implementing much trumpeted organizational changes documented by other economic historians. A key finding of the studyis that significant variation in adoption rates can be found not only between industries, but also between different processes within industries and firms. A failure to investigate at the micro-level has led some authors to making sweeping and incorrect generalizations about the diffusion process. The analysis suggests that an understanding of diffusion patterns of new technologies is highly dependent on an understanding of their varied uses.

Link to paper:  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=299395
 

“The Most Technologically Progressive Decade of the Century”
Alexander J. Field
Abstract:  Because of the Depression’s place in both the popular and academic imagination, and the repeated and justifiable emphasis on output that wasn’t produced, income that wasn’t earned, and expenditure that didn’t take place, it will seem startling to propose the following hypothesis:  the Depression years were, in the aggregate,  the most technologically progressive of any comparable period in U. S. economic history.  The hypothesis can be read as entailing two claims:  first that during this period businesses and government contractors implemented or adopted on a more widespread basis a wide range of new technologies and practices, resulting in the highest rate of measured peacetime peak to peak multifactor productivity growth in the century, and secondly, that the decade produced advances that replenished and expanded the larder of unexploited or only partially exploited techniques, thus providing the basis for much of the labor and multifactor productivity improvement in the 1950s and 1960s. 
 
“Ringing in the Twentieth Century:  The Effects of State Monopolies, Private Ownership, and Operating Licenses on Telecommunications in Europe, 1892-1914”
Scott Wallsten
Abstract:  The current wave of telecom liberalization actually represents a return to private provision and competition in many countries rather than a new phenomenon.  The early 20th century saw great variation in sector structure, with state-owned monopolies in some countries and vigorous competition in others.  This paper uses an original dataset compiled from turn-of-the-(20th) century industry documents and scholarly works to test the effects of government monopoly service, private provision, and operating licenses on early telephone development.  Controlling for per capita income and, when possible, country and year fixed effects, I find state monopoly provision correlated with lower telephone penetration and higher long-distance prices than privately-provided service.  Contrary to conventional wisdom, state-owned monopolies also provided worse rural service.  Operating licenses that allowed the state to appropriate firms' assets lead to lower telephone penetration and higher prices.

Link to paper: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=281092

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