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The Model T

Author

Listed:
  • Shari Eli
  • Joshua K. Hausman
  • Paul Rhode

Abstract

We ask (1) why the United States adopted the car more quickly than other countries before 1929, and (2) why in the United States the car changed from a luxury to a mass market good between 1909 and 1919. We argue that the answer is in part the success of the Model T in the United States and its relative lack of success abroad. Mass production of the Model T began in 1913; by 1917, more than 40 percent of cars on the road were Model Ts. Cross-state and cross-county evidence suggest that the Model T opened up a new market for cars among farmers and in poorer areas of the country. Tariffs and difficulties producing outside Detroit made the U.S. success of the Model T difficult to replicate abroad, even in Canada.

Suggested Citation

  • Shari Eli & Joshua K. Hausman & Paul Rhode, 2023. "The Model T," NBER Working Papers 31454, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31454
    Note: DAE
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    More about this item

    JEL classification:

    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • N62 - Economic History - - Manufacturing and Construction - - - U.S.; Canada: 1913-
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-

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