Working Paper: NBER ID: w31454
Authors: 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.
Keywords: No keywords provided
JEL Codes: N12; N32; N62; N7; N72; N92
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Model T introduction (Y20) | rapid adoption of cars (L92) |
| mass production of Model T (L23) | decrease in car prices (R48) |
| decrease in car prices (R48) | accelerated adoption rates (D16) |
| Model T sales (N72) | increased car registrations in rural areas (R48) |