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To isolate the impact of access to electricity on local economies, we examine the impact of the Rural Electrification Administration low-interest loans in the 1930s. The REA provided loans to cooperatives to lay distribution lines to farms and aid in wiring homes. Consequently, the number of...
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hand-collected data on banking and agriculture in Illinois in the early 20th century. The mechanism for the Fed's effect on … agriculture was a bank credit channel, operating independently of any deflationary effect on money supply. Our findings suggest …
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