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1、EntrepreneurshipintheUnitedStates,1865-1920NaomiR.Lamoreaux,UCLAandNBERAcknowledgments:ThisessaybenefitedgreatlyfromthehelpfulcommentsofWilliamBaumol,LouisCain,MargaretGraham,andJoelMokyr.Contactinformation:NaomiR.Lamoreaux,DepartmentofEconomics,8283BuncheHall,405HilgardAvenue,UniversityofCalif
2、ornia,LosAngeles,CA90095-1477;310-825-0225(phone);310-825-9528(fax);lamoreaux@econ.ucla.edu.2EntrepreneurshipintheUnitedStates,1865-1920NaomiR.Lamoreaux,UCLAandNBER1.APeriodofRapidExpansionThehalf-centuryorsofollowingtheCivilWarwasaperiodofextraordinarilyrapideconomicgrowthintheUnitedStates.Rea
3、lgrossdomesticproduct(GDP)multipliedmorethanseventimesbetween1865and1920,andrealpercapitaproductmorethandoubled.AsthemuchhighergrowthratesoftotalcomparedtopercapitaGDPsuggest,theeconomyexpandedmorebyaddingnewinputsthanitdidbyincreasingproductivity.Nevertheless,therateofincreaseinpercapitaproduc
4、t(averagingabout1.7percentperyearovertheentireperiod1870-1920)washigherthaneverbeforeinU.S.history,andtotalfactorproductivitygrewfromanindexvalueof51.0in1889,thefirstyearforwhichfiguresareavailable,to81.2in1920(1929=100).Theseproductivityfigures,moreover,greatlyunderestimatetheextentoftechnolog
5、icalprogress.Becausetheyarecalculatedasresiduals,theydonotcaptureimprovements1embodiedincapitalorotherinputstoproduction.Althoughmanyfactorscontributedtotheextensivegrowthoftheperiod,includinghighratesofimmigrationandasubstantialriseinthesavingsrate,perhapsthemostimportantwastheexpansionandimpr
6、ovementofthenation‟stransportationandcommunicationsnetwork.Thisdevelopmentpermittedtheabundantagriculturalandmineralresourcesofthewesternpartsofthecountrytobebroughtintoprofitableproduction.Italsocontributedtotheriseofpercapitaincome,mostobviouslyby1SusanB.Carter,etal.,2006,HistoricalStatistics
7、oftheoftheUnitedStates:EarliestTimestothePresent,MillennialEdition(Cambridge:CambridgeUniversityPress),Vol.3,pp.3,5,23-25,463.3makingitpossibletoexploiteconomiesofscaleandtoconcentrateproductioninareasofthecountrythatforonereasono
