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The Impact of the Civil War on Capital Intensity and Labor Productivity in Southern Manufacturing / William Hutchinson, Robert A. Margo.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Hutchinson, William.
Contributor:
National Bureau of Economic Research.
Margo, Robert A.
Series:
Working Paper Series (National Bureau of Economic Research) no. w10886.
NBER working paper series no. w10886
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2004.
Summary:
The Civil War resulted in a substantial divergence in the regional structure of factor prices. In particular, wages fell in the South relative to the non-South, but interest rates and other measures of the costs of capital increased. Using archival data for manufacturing establishments, we show that capital-output and capital-labor ratios in southern manufacturing declined relative to non-southern manufacturing after the War, precisely in the direction implied by the regional shifts in factor prices. Labor productivity in Southern manufacturing also declined, but this decline is explained by the reduction in capital intensity.
Notes:
Print version record
November 2004.

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