Hornbeck, Richard; Hsu, Shanon; Humlum, Anders; … - National Bureau of Economic Research - 2024
We examine the long transition from water to steam power in US manufacturing, focusing on early users of mechanical … powered entrants and agglomeration, as water powered incumbents faced switching barriers primarily from sunk costs. Estimating … exit, switching barriers remained influential for aggregate steam adoption throughout the 19th century, as water power …