Portage: Path Dependence and Increasing Returns in U.S. History

63 Pages Posted: 22 Sep 2010

See all articles by C. Hoyt Bleakley

C. Hoyt Bleakley

University of Chicago - Booth School of Business; University of Chicago

Jeffrey Lin

Federal Reserve Banks - Federal Reserve Bank of Philadelphia

Multiple version iconThere are 2 versions of this paper

Date Written: August 20, 2010

Abstract

The authors examine portage sites in the U.S. South, Mid-Atlantic, and Midwest, including those on the fall line, a geomorphologic feature in the southeastern U.S. marking the final rapids on rivers before the ocean. Historically, waterborne transport of goods required portage around the falls at these points, while some falls provided water power during early industrialization. These factors attracted commerce and manufacturing. Although these original advantages have long since been made obsolete, the authors document the continuing-and even increasing-importance of these portage sites over time. They interpret this finding in a model with path dependence arising from local increasing returns to scale.

Keywords: Economic Geography, History Dependence, Initial Conditions, Fall Line, Coordination Problem

Suggested Citation

Bleakley, C. Hoyt and Lin, Jeffrey, Portage: Path Dependence and Increasing Returns in U.S. History (August 20, 2010). FRB of Philadelphia Working Paper No. 10-27, Available at SSRN: https://ssrn.com/abstract=1666266 or http://dx.doi.org/10.2139/ssrn.1666266

C. Hoyt Bleakley (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

Jeffrey Lin

Federal Reserve Banks - Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

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