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State Capacity and American Technology: Evidence from the 19th Century

11 Pages Posted: 1 Feb 2016  

Daron Acemoglu

Massachusetts Institute of Technology (MIT) - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Jacob Moscona

Harvard University

James A. Robinson

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies

Date Written: January 2016

Abstract

Robert Gordon's The Rise and Fall of American Economic Growth provides a compelling interpretation of how technical change and innovation has radically changed the living standards of the citizens of the US in the past 150 years. Lying behind these changes are the institutions which have allowed the country to harness its human potential. In this paper we conduct an empirical investigation of the impact of one key set of institutions, the capacity of the US state as proxied by the presence of post offices in a county, on innovation. We show that between 1804 and 1899, the time when the US became the world technological leader, there is a strong association between the presence and number of post offices in a county and patenting activity, and it appears that it is the opening of postal offices that leads to surges in patenting activity, not the other way around. Our evidence suggests that part of the yet untold story of US technological exceptionalism is the way in which the US created an immensely capable and effective state.

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Suggested Citation

Acemoglu, Daron and Moscona, Jacob and Robinson, James A., State Capacity and American Technology: Evidence from the 19th Century (January 2016). NBER Working Paper No. w21932. Available at SSRN: https://ssrn.com/abstract=2725710

Daron Acemoglu (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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Jacob Moscona

Harvard University ( email )

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James Robinson

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies ( email )

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