Essays on the economy of 19th century England

The thesis consists of three chapters that examine the economy of England in the 19th century. Chapter 1 studies the impact of the construction of the railroad network on local patenting. Using novel data, I find that, by increasing market access, the railroad caused an increase in local patenting. Chapter 2 studies how the Panic of 1825 affected the local economy. The financial system was subject to strict rules requiring small, local banks to have a working relationship with a London agent bank, and we exploit the sudden financial collapse of these London agent banks to establish how the collapse of a local bank connected to a failed London agent caused an increase in local non-financial firm bankruptcies. Chapter 3 studies how the railroad affected economic growth. I find little evidence that the construction of the network increased local land values or had any impact on local bankruptcies. I provide evidence that this could be due to a creative destruction effect in which the destruction element was particularly strong.