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The Diffusion of the Tractor in American Agriculture: 1910-60

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  • Alan L. Olmstead
  • Paul W. Rhode

Abstract

This paper examines the impact and diffusion of the gasoline tractor in American agriculture. A key feature of the transition from horses to tractors was a long intermediate stage when both modes of power were used on the same farm. This is largely explained in the technical limitations of early tractors. In addition, we explore how rural markets and institutions adjusted to facilitate diffusion. Our simultaneous-equation regression analysis reveals that farm scale and tractor adoption had positive, independent effects on each other. Finally, we analyze diffusion as a capital replacement problem, which reveals that the shift to the new technology came far sooner than has generally been thought.

Suggested Citation

  • Alan L. Olmstead & Paul W. Rhode, 2000. "The Diffusion of the Tractor in American Agriculture: 1910-60," NBER Working Papers 7947, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:7947
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    References listed on IDEAS

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    1. Cooper, Martin R. & Barton, Glen T. & Brodell, Albert P., 1947. "Progress of Farm Mechanization," Miscellaneous Publications 314796, United States Department of Agriculture, Economic Research Service.
    2. Kislev, Yoav & Peterson, Willis, 1982. "Prices, Technology, and Farm Size," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 578-595, June.
    3. 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.
    4. Balke, Nathan S & Gordon, Robert J, 1989. "The Estimation of Prewar Gross National Product: Methodology and New Evidence," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 38-92, February.
    5. John M. Brewster, 1950. "The Machine Process in Agriculture and Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 32(1), pages 69-81.
    6. Fox, Austin, 1966. "Demand for Farm Tractors in the United States: A Regression Analysis," Agricultural Economic Reports 307318, United States Department of Agriculture, Economic Research Service.
    7. Olmstead, Alan L. & Rhode, Paul W., 1995. "Beyond the Threshold: An Analysis of the Characteristics and Behavior of Early Reaper Adopters," The Journal of Economic History, Cambridge University Press, vol. 55(1), pages 27-57, March.
    8. Abel, Andrew B., 1990. "Consumption and investment," Handbook of Monetary Economics, in: B. M. Friedman & F. H. Hahn (ed.), Handbook of Monetary Economics, edition 1, volume 2, chapter 14, pages 725-778, Elsevier.
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    Cited by:

    1. Heckman, James J. & Landersø, Rasmus, 2021. "Lessons from Denmark about Inequality and Social Mobility," IZA Discussion Papers 14185, Institute of Labor Economics (IZA).
    2. Jonathan Skinner & Douglas Staiger, 2007. "Technology Adoption from Hybrid Corn to Beta-Blockers," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 545-570, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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