Early American Joint-Stock Investors and Their Challenges Investing in a Physical Structure: The Case of Boston’s Long Wharf, 1710-1825

Posted on: November 2nd, 2017 by EBHS No Comments

Editors of the Essays in Economic and Business History announce the publication of Kelly M. Kilcrease’s In Press article forthcoming in the May 2018 printed volume of the journal.

Early American Joint-Stock Investors and Their Challenges Investing in a Physical Structure: The Case of Boston’s Long Wharf, 1710-1825

Kelly M. Kilcrease

This paper examines the case of Boston’s Long Wharf, a joint-stock company locally chartered in 1710, in order to gain insight into the significant internal and external challenges early American investors faced when their investment was in a physical structure. These challenges that were addressed by the shareholders, who were referred to as the proprietors, are examined over a period of 115 years from the points of the wharf’s construction to its diminution. An analysis of the company’s various records shows that the more serious challenges for the proprietors were seen in building the wharf itself, trying to prevent avoidable damage, addressing maintenance needs, surviving the economic consequences of the American Revolution and the War of 1812, and adjusting to Boston’s physical and commercial growth. The paper concludes that the proprietors did an admirable job in addressing the major challenges of their time and produced results that kept the wharf active economically for the long term.

The Growth of the Japanese Electric Power Industry and the World Bank’s Request to Increase Depreciation Costs Between 1951 and 1973

Posted on: November 1st, 2017 by EBHS No Comments

Editors of the Essays in Economic and Business History announce the publication of Takashi Kitaura’s In Press article forthcoming in the May 2018 printed volume of the journal.

The Growth of the Japanese Electric Power Industry and the World Bank’s Request to Increase Depreciation Costs Between 1951 and 1973

Takashi Kitaura

This study investigates the growth of the Japanese electric power industry following increases in the ratio of the depreciation cost to fixed assets and the construction of new electric power stations which employed depreciation cost as a funding mechanism. In addition, it reveals the determinant of the increase in the ratio of depreciation cost to fixed assets by using multiple regression analysis. This analysis shows that the World Bank’s request to increase depreciation costs contributed to the increase in the ratio of depreciation cost to fixed assets; however, the actual loan experience of companies borrowing from the World Bank did not. Thus, the World Bank’s request was effective only in the execution of loans. The role of the World Bank was significant for the growth of the Japanese electric power industry between 1953 and 1961, but was minimal after 1962. On the other hand, the increase of revenue from the demand increase and the fall of the ratio of cost to revenue contributed to the continuous increase of the ratio of depreciation cost to fixed assets.

Philosopher’s Concrete & The Co-movement of the Irish, UK, and US Stock Markets

Posted on: September 12th, 2017 by EBHS No Comments

Editors of the Essays in Economic and Business History are proud to announce the publication of two In Press articles forthcoming in the May 2018 printed volume of the journal. The articles are:

Soudeh Mirghasemi: Philosopher’s Concrete: Dam Construction, Farmland Values, and Agricultural Production in the Western US, 1890–1920

Did construction of the Bureau of Reclamation dams in the early 20th century raise farm values and increase agricultural output? I construct a new county-level panel dataset from 1890 to 1920 with information on geography, climate, politics, agriculture, and major dams, and then evaluate the effect of the Bureau of Reclamation dams on the value of farms and on crop productivity. Using fixed effect panel estimation, I find that new federal dam construction increased the average value of farmland by approximately 6.4 percent. When I apply an instrument to control for potential endogeneity, the effect of Bureau dams on farmland value increases in size, although the estimate also becomes noisier and is no longer statistically significant. My results indicate that Bureau dams constructed in prior decades and the new dams constructed by other agencies did not have a statistically significant effect on the value of farms. In terms of crop output, the only crop affected by the dams was alfalfa.

Rebecca Stuart: The Co-movement of the Irish, UK, and US Stock Markets, 1869–1925

This paper studies the co-movements of the Irish stock markets with those in the UK and the US using monthly data between 1869 and 1925. The time-varying correlation of the markets are estimated in a tri-variate DCC-GARCH framework. Spillovers from the UK market to the Irish market are evident in increasing correlation during periods of crisis. The correlation between the Irish and UK markets is much higher than that between the US and either market, suggesting that there was an unusually strong relationship between the Irish and UK markets during the sample period.