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TOPIC: | GAINING STEAM: INCUMBENT SWITCHING AND ENTRANT LEAPFROGGING |
ABSTRACTWe examine the long transition from water to steam power in US manufacturing, exploring how early advantages can delay the adoption of new technologies. Using newly digitized Census of Manufactures manuscripts for 1850-1880, we show that as steam costs declined, mill activity grew faster in counties with less waterpower. This growth was driven by steam-powered entrants, as previously-waterpowered mills exited instead of switching technologies, suggesting technological lock-in. For identification, we leverage variation in US counties’ waterpower potential, due to interacting water flow and elevation changes. To quantify the delay in steam adoption from technological lock-in, we estimate a dynamic model of firm entry and steam adoption. Click here to view the CV. | |  | PRESENTERAnders Humlum The University of Chicago Booth School of Business | RESEARCH FIELDSTechnical Change Labor Economics | DATE:29 February 2024 (Thursday) | TIME:4pm - 5.30pm | VENUE:Meeting Room 5.1, Level 5
School of Economics
Singapore Management University
90 Stamford Road
Singapore 178903 |
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