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Engines of Growth: Farm Tractors and Twentieth-Century U.S. Economic Welfare

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  • Richard H. Steckel
  • William J. White
Abstract
The role of twentieth-century agricultural mechanization in changing the productivity, employment opportunities, and appearance of rural America has long been appreciated. Less attention has been paid to the impact made by farm tractors, combines, and associated equipment on the standard of living of the U.S. population as a whole. This paper demonstrates, through use of a detailed counterfactual analysis, that mechanization in the production of farm products increased GDP by more than 8.0 percent, using 1954 as a base year. This result suggests that studying individual innovations can significantly increase our understanding of the nature of economic growth.

Suggested Citation

  • Richard H. Steckel & William J. White, 2012. "Engines of Growth: Farm Tractors and Twentieth-Century U.S. Economic Welfare," NBER Working Papers 17879, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:17879
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    References listed on IDEAS

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    1. Olmstead, Alan L. & Rhode, Paul W., 2001. "Reshaping The Landscape: The Impact And Diffusion Of The Tractor In American Agriculture, 1910–1960," The Journal of Economic History, Cambridge University Press, vol. 61(3), pages 663-698, September.
    2. Csorba, Julius J., 1960. "Farm Tractors: Trends in Type, Size, Age and Use," Agricultural Information Bulletins 308902, United States Department of Agriculture, Economic Research Service.
    3. Andrew Schmitz & David Seckler, 1970. "Mechanized Agriculture and Social Welfare: The Case of the Tomato Harvester," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(4), pages 569-577.
    4. Reynoldson, L. A. & Humphries, W. R. & Speelman, S. R. & McComas, Earl W. & Youngman, W. H., 1933. "Utilization and Cost of Power on Corn Belt Farms," Technical Bulletins 163614, United States Department of Agriculture, Economic Research Service.
    5. Mann, Jitendar S. & St. George, George E., 1978. "Estimates of Elasticities for Food Demand in the United States," Technical Bulletins 157867, United States Department of Agriculture, Economic Research Service.
    6. Olmstead,Alan L. & Rhode,Paul W., 2008. "Creating Abundance," Cambridge Books, Cambridge University Press, number 9780521857116.
    7. Summerhill, William R., 1996. "Railroads and the Brazilian Economy Before 1914," The Journal of Economic History, Cambridge University Press, vol. 56(2), pages 464-467, June.
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    Cited by:

    1. Bruland, Kristine & Smith, Keith, 2013. "Assessing the role of steam power in the first industrial revolution: The early work of Nick von Tunzelmann," Research Policy, Elsevier, vol. 42(10), pages 1716-1723.
    2. Richard Hornbeck & Suresh Naidu, 2014. "When the Levee Breaks: Black Migration and Economic Development in the American South," American Economic Review, American Economic Association, vol. 104(3), pages 963-990, March.
    3. Hiroyuki Takeshima & Ian Masias & Myat Thida Win & Phoo Pye Zone, 2023. "Effects of COVID‐19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 323-351, February.
    4. Lewis, Joshua & Severnini, Edson, 2020. "Short- and long-run impacts of rural electrification: Evidence from the historical rollout of the U.S. power grid," Journal of Development Economics, Elsevier, vol. 143(C).
    5. Bhattarai, Madhusudan & Joshi, Pramod Kumar & Shekhawa, R. S. & Takeshima, Hiroyuki, 2017. "The evolution of tractorization in India’s low-wage economy: Key patterns and implications," IFPRI discussion papers 1675, International Food Policy Research Institute (IFPRI).
    6. Daniel P. Gross, 2018. "Scale versus scope in the diffusion of new technology: evidence from the farm tractor," RAND Journal of Economics, RAND Corporation, vol. 49(2), pages 427-452, June.

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    More about this item

    JEL classification:

    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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