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AEH: EUR.GROWTH: What Did Matter Electricity Rates or Capital and Labour Prices? Electrification of the Madrilenean Industry and its Determinants

Anna M. Aubanell-Jubany (anna.aubanell at uab.es)

Wed Apr 26 11:23:26 EDT 2006

                ABSTRACTS IN ECONOMIC HISTORY
                     (c) 2006 EH.Net
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Name: Anna M. Aubanell-Jubany
Email: anna.aubanell at uab.es
Institution: Universitat Autonoma de Barcelona

Co-author: none

Title: What Did Matter Electricity Rates or Capital and Labour 
Prices? Electrification of the Madrilenean Industry and its 
Determinants

Internet Address of abstracted work: not available

By mail:
Departament d'Economia i Historia Economica
Universitat Autonoma de Barcelona
Edifici B, Campus de Bellaterra, 08193 Bellaterra
Spain

Language:

Abstract:
The first objective is to know the degree of electrification of the 
industry, as the percentage of companies that used electricity. The 
second objective is to analyse which were the decisive factors in the 
electrification process.

The main hypothesis of this paper is that the biggest contribution 
that electricity made to economic growth derived from the 
mechanisation of the small companies and workshops because of the 
productivity increase. In these firms the introduction of the 
electricity did not mean the substitution of an energy form by 
another, as it happened in the big companies, but the substitution of 
labour by capital and energy. The electric motor allowed the use of 
mechanical driven power for the small workshops. Under theses 
premises this paper will test the hypothesis that the main factors 
that influenced electrification were wages and the price of the 
motor, a variable not used in previous studies, while energy prices 
had a secondary role.

Bibliography: Aubanell-Jubany, Anna M.. "What Did Matter Electricity 
Rates or Capital and Labour Prices? Electrification of the 
Madrilenean Industry and its Determinants." Working Paper, 
Universitat Autonoma de Barcelona, 2006.

Subject: R
Geographical Area: 4
Country/Region: Spain
Time Period: 8

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