class: center, middle, inverse background-image: url("Figures/Background_intro.png") background-size: cover background-color: #2c5c34 <style type="text/css"> .pull-left { float: left; width: 44%; } .pull-right { float: right; width: 44%; } .pull-right ~ p { clear: both; } .pull-left-wide { float: left; width: 66%; } .pull-right-wide { float: right; width: 66%; } .pull-right-wide ~ p { clear: both; } .pull-left-narrow { float: left; width: 33%; } .pull-right-narrow { float: right; width: 33%; } .pull-right-narrow ~ p { clear: both; } .small123 { font-size: 0.80em; } .large123 { font-size: 2em; } </style> # Aggerkanalens betydning for Limfjordens økonomiske udvikling ## Hvad er effekten af transportforbedringer? ### Christian Vedel,<br> Syddansk Universitet ### Transportøkonomisk Forening, 2024-04-10 ??? ..large123[**---> 1 <----**] --- class: middle <img src="Figures/Map.png" width="70%" style="display: block; margin: auto;" /> ??? .large123[**---> 7 <----** ] --- class: middle # Introduktion .pull-left[ - Nordjylland er en ø - men har ikke altid været det - Hvad er effekten af transportforbedringer? - 24% <-- Hvad betyder det? Og hvorfor er det vigtigt? #### Disposition - Hvem er jeg? - Hvad er økonomisk historie - Hvad er transport-økonomi (for sådan en)? - Hvad skete der ved Limfjorden i 1825? ] .pull-right[ <img src="Figures/Petersen 1877.png" width="100%" style="display: block; margin: auto;" /> *Petersen (1877)* ] ??? .large123[**---> 6 <----** ] - Understanding what causes wealth (wellbeing, etc.) is at the heart of Economics - Understanding the interplay between geography (environment) and Economics is vital in the 21st century --- class: middle .pull-left[ # Christian Vedel - ***Økonom***isk historiker v. SDU - PhD, 2023: "Natural Experiments in Geography and Institutions", Syddansk Universitet, Økonomisk Institut - Forskning: + Emner: Geografi (transport) og historie + Metoder: Maskinlæring og kausal inference ] .pull-right[  ] --- class: middle # Økonomisk historie .pull-left[ > *"Den videnskabelige del af økonomi (og historie)"* - Deidre McCloskey - Et forsøg på at afdække de største, bredeste, *positive* (modsat normative) sammenhænge - Tester ting økonomer og historikere påstår - Årsager og effekter og størrelsen deraf: + Hvorfor er der højere velstand i nogle samfund? + Hvorfor er der mere ulighed i nogle samfund? + Oprindelsen af den industrielle revolution + Kvinders arbejdsmarkedsdeltagelse + Hvordan blev Danmark et rigt og lykkeligt land? + **Hvad er effekten af geografi på økonomisk udvikling?** ] .pull-right[  .small123[ Navne: Bernanke, Eichengreen, Fogel, Friedman, Goldin, Kuznets, Maddison, Marx, Morkyr, North, Piketty, Romer, Schumpeter ##### Note: - Nogle gange er svaret: "Det ved vi ikke" - Ofte er svaret: "i gennemsnit sker der X"' - Cost-Benefit-analysernes grundstof ] ] --- class: middle .pull-left-wide[ # Verdens mindste teori-sektion: - Malthus 101: + Det er trist at være fattig + Endnu mere i fattige samfund - Dynamik: + Velstandsforbedring `\(\rightarrow\)` flere børn overlever + Velstrandsforringelse `\(\rightarrow\)` flere børn dør - **Resultat:** Befolkningstilvækst (i fattige samfund) er et udtryk for velstand ] .pull-right-narrow[  .small123[ Thomas Malthus (1766-1834) *Source: [Wikimedia commons](https://commons.wikimedia.org/wiki/File:Thomas_Robert_Malthus_Wellcome_L0069037_-crop.jpg)* ] ] --- class: middle # Transportøkonomi .pull-left[ - To forklaringer: + Institutioner + Geografi - Geografi: + 1.-ordens: Naturskabt + 2.-ordens: Menneskeskabt + Ressourcer + Morfologi og markedsadgang* .footnote[ * *Økonom-ord for afstanden mellem mennesker og hvad de laver* ] ] .pull-right[  ] --- # Transportøkonomi - resultater .pull-left[ - Vi *tror* at markedsadgang leder til højere velstand - Lukningen af Suez-kanalen (1967-1975) førte til tab af velstand (Feyrer, 2021) - Panama-kanalen førte til forøget velstand (Maurer & Rauch, 2023) - Steder tæt på naturlig adgang til markeder klare sig bedre (Henderson, Storeygard, Weil, 2018) - Jernbaner var årsag til velstandsforbedringer (ikke omvendt) (Berger & Enflo, 2017; Donaldson & Hornbeck, 2016) **Problemer** - Årsager til begge: Udvikling eller målet om samme - Brug for naturlige ekseperimenter ] .pull-right[  ] --- class: center, middle, inverse background-image: url("Figures/Background_ch1.png") background-size: cover background-color: #273a8f # Aggerkanalens betydning for Limfjordens økonomiske udvikling ??? .large123[**---> 4 <----**] --- class: middle # Aggertangen .pull-left[ - D. 4. februar 1825 brød den smalle Agger-kanal og blev kort efter sejlbar - Limfjorden havde været lukket i 700 år. #### Det vi kan måle - Kanalen medførte handel - Kanalen gav befolkningsvækst - Kanalen gav manufakturarbejde - Det modsatte skete efter 1100-tallet ] .pull-right[ <img src="Figures/Deichbruch_an_der_Elbe_1825.jpg" width="100%" style="display: block; margin: auto;" /> .small123[ Diebrud ved Elben, 1825 [Wikimedia commons](https://commons.wikimedia.org/wiki/File:Deichbruch_an_der_Elbe_1825.jpg) ] ] ??? .large123[**---> 6 <----** ] - Understanding what causes wealth (wellbeing, etc.) is at the heart of Economics - Understanding the interplay between geography (environment) and Economics is vital in the 21st century --- # Kort .center[ <iframe src="https://www.google.com/maps/embed?pb=!1m14!1m12!1m3!1d704129.7470425251!2d8.826970647896832!3d56.880787313536544!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!5e1!3m2!1sda!2sdk!4v1634159326111!5m2!1sda!2sdk" width="1000" height="450" style="border:0;" allowfullscreen="" loading="lazy"></iframe> ] --- # 'Thye'-landet .pull-left[ #### Aagard, 1802 - "En anden plan ... Den består i at forene Liimfiorden med Vesterhavet, ved at gennemskiære den smalle landstrimmel" - "For nærværende Tid bestaar Sejladsen paa Liimfiorden allene i at bringe Landets Korn ned til Aalborg, og igen derfra at hente de fornødne Kjøbmandsvare." - "I Særdelshed blive Aggerbeboerne anseete som de mindst kultiverede ..." - "En ublidere Iordplet end den hvorpaa Agger Sogn ligger, findes maaske neppe beboet" - Øllet smager også dårligt for de har ikke brænde til at koge urten længe nok ] .pull-right[  .center[ .small123[ *Aagard (1802)* ] ] ] .footnote[ .small123[Samme historie males af Christensen (1785), Schade (1811), Thaarup (1825), osv.] ] --- name: timeline # Tidslinje -- #### Før 1825: - 1085-1208: En vestlig kanal lukker til - 1672: Aalborg er landets 2.-største købstad - Vestlige limfjordskøbstæder er blandt de mindste -- #### Efter 1825: - 1825: Bruddet på Aggertangen - 1834: Skibe begynder at benytte den nye kanal - 1841: Limfjordskøbstæder får frie handelsrettigheder - 1850-1900: Stor økonomisk fremgang  ??? .large123[**---> 8 <----** ] --- class: middle <img src="Figures/Map.png" width="70%" style="display: block; margin: auto;" /> --- # Markedsadgang .pull-left[ Kost-afstand fra sogne til havne: `$${MA}_p = \sum_{h \in H} [CostDist(p, h) + 1]^\theta \times W_{p}$$` - CostDist - Dijkstra's agoritme - 10 gange højere pris for landtransport - `\(\theta = -1\)` - Nye havne i limfjorden: `\(H\rightarrow H^*\)` `$$MA_{before} = MA_p|H \\ MA_{after} = MA_p|H^*$$` Effekten af bruddet: `$$\Delta log(MA) = log(MA_{after})-log(MA_{before})$$` ] .pull-right[  ] --- class: middle # Data **To primære kilder:** 1. Folketællinger 1787-1901 (meget stort excelark m. 13.5 mio. observationer) 2. Øresundstoldens regnskaber (1.8 mio rejser) (3. Arkæologiske fund) --- # Handel kom til Limfjorden <img src="Figures/Ship_trafic.png" width="70%" style="display: block; margin: auto;" /> ??? .large123[**---> 13 <----** ] --- # Skibe gennem Aggerkanalen  *Svalgaard (1977) toldarkiver* --- # Tilpasning .pull-left-narrow[ - Fisk blev tabt - Nye muligheder kom til - Havnene kunne ikke følge med - Magre men gyldne tider ### Projekter - Frederik VII kanal - Høfdebygning - Jernbane - Landeveje - Nye havne i alle købstæderne - Fiskeri på åbent hav (og senere IM) ] .pull-right-wide[  ] --- name: pop # Befolkningstilvækst .pull-left[ ### Effekt af markedsadgang <img src="Figures/pop_ma.png" width="100%" style="display: block; margin: auto;" /> ] .pull-right[ ### Gennemsnitligt for vestl. Limfj. <img src="Figures/pop_dummy.png" width="100%" style="display: block; margin: auto;" /> ] ??? .large123[**---> 14 <----**] - Rauch & Maurer (2022): 2.3 for panama canal --- # Beskæftigelser (1/2) .pull-left-wide[ <img src="Figures/All_occupations.png" width="80%" style="display: block; margin: auto;" /> ] .pull-right-narrow[ - Tilvækst i manufakturhandel - Tilvækst i landbrug (det man 'falder tilbage på') ] ??? .large123[**---> 14 <----** ] --- # Beskæftigelser (2/2) .pull-left-wide[ <img src="Figures/Occ_decom_dummy_asi2.png" width="90%" style="display: block; margin: auto;" /> ] .pull-right-narrow[ - Spinderi, fabriksarbejde, husflid og fiskeri - *Baseret på ny algoritme, der kan kategorisere beskrivelser* ] ??? .large123[**---> 15 <----** ] --- # Tilflytning eller fødsler? .pull-left[ ### Migration *Født i andet amt:* <img src="Figures/born_different.png" width="100%" style="display: block; margin: auto;" /> ] .pull-right[ ### Fødsler *Børn pr. kvinde:* <img src="Figures/fertility.png" width="100%" style="display: block; margin: auto;" /> ] ??? .large123[**---> 15 <----**] --- class: middle .pull-left[ # Det modsatte naturlige eksperiment - Ekstern validitet? - Det viser sig, at være smart at samle sin 'handelsflåde' i Limfjorden i vikingetiden (Matthiessen 1941; Rasmussen, 1966) - Limfjorden er den samme, men landet er **meget** anderledes i 1200-tallet - Mellem 1086 og 1208 lukker Limfjordens vestlige indsejling til (Saxo, 1208 + Geologiske kilder). **Data?** - Registerdata ] .pull-right-narrow[  *'Overseas Guests', Roerich (1901)*  *maps.stamen.com* ] ??? .large123[**---> 17 <----**] --- class: center name: arch1 **Møntfund** <img src="Figures/arch_dummy_coins.png" width="80%" style="display: block; margin: auto;" /> [More details](#appendixarch); [Matched sample alternative](#matching_coins) ??? .large123[**---> 17 <----**] --- class: center name: arch2 **Bygninger** <img src="Figures/arch_dummy_buildings.png" width="80%" style="display: block; margin: auto;" /> [More details](#appendixarch); [Matched sample alternative](#matching_buildings) ??? .large123[**---> 18 <----**] --- name: other-results # Konklusion .pull-left[ - **RQ:** Hvad betyder transport for økonomisk udvikling? - 24 procent - Handel, manufaktur, fiskeri - Unik stærkt naturligt laboratorie. - Ingen havde valgt, at det skulle være der, eller på det tidspunkt. ] .pull-right[ <img src="Figures/Morsoe.jpg" width="60%" style="display: block; margin: auto;" /> *Morsøovn i mit barndomshjem. Svensk/Norsk jern og Engelsk kul. Grundlagt i 1853.* ] ??? .large123[**---> 19 <----**] --- # Referencer .small123[ Berger, Thor and Enflo, Kerstin, (2017), Locomotives of local growth: The short- and long-term impact of railroads in Sweden, Journal of Urban Economics, 98, issue C, p. 124-138, https://EconPapers.repec.org/RePEc:eee:juecon:v:98:y:2017:i:c:p:124-138. Donaldson, D., Hornbeck, R., Railroads and American Economic Growth: A “Market Access” Approach , The Quarterly Journal of Economics, Volume 131, Issue 2, May 2016, Pages 799–858, https://doi.org/10.1093/qje/qjw002 Feyrer, James. 2019. "Trade and Income—Exploiting Time Series in Geography." American Economic Journal: Applied Economics, 11 (4): 1-35. DOI: 10.1257/app.20170616 Feyrer, J. (2021). Distance, trade, and income — The 1967 to 1975 closing of the Suez canal as a natural experiment. Journal of Development Economics, 153, 102708. doi:10.1016/j.jdeveco.2021.102708 J Vernon Henderson, Tim Squires, Adam Storeygard, David Weil, The Global Distribution of Economic Activity: Nature, History, and the Role of Trade, The Quarterly Journal of Economics, Volume 133, Issue 1, February 2018, Pages 357–406, https://doi.org/10.1093/qje/qjx030 Stephan Maurer, Ferdinand Rauch, Economic geography aspects of the Panama Canal, Oxford Economic Papers, Volume 75, Issue 1, January 2023, Pages 142–162, https://doi.org/10.1093/oep/gpac009 ] --- name: appendix1 count: false class: center, middle, inverse background-color: #273a8f # Appendix .footnote[ [Back](#apendicies) ] --- name: new-ports # New ports [Back](#instmech)  --- name: railways1 # Railways (1/2) [Back](#instmech) .pull-left[  ] .pull-right[  ] Source: Fertner (2013) --- name: railways2 # Railways (2/2) [Back](#instmech) .pull-left[  ] .pull-right[  ] Source: Fertner (2013) --- name: MAmath # Market Access .pull-left[ Based on cost distance from parishes to harbours: `$${MA}_p = \sum_{h \in H} [CostDist(p, h) + 1]^\theta \times W_{p}$$` - CostDist - Dijkstra's agorithm and 1/10 land/sea ratio - `\(\theta = -1\)` - Breach caused new harbours in West Limfjord: `\(H\rightarrow H^*\)` `$$MA_{before} = MA_p|H \\ MA_{after} = MA_p|H^*$$` Main measure: `$$\Delta log(MA) = log(MA_{after})-log(MA_{before})$$` ] .pull-right[  ] .footnote[[Back](#empstrat1)] --- name: elsinor # Elsinor .center[ <iframe src="https://www.google.com/maps/embed?pb=!1m14!1m12!1m3!1d3743.038856836935!2d12.616720634729397!3d56.03904113734528!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!5e1!3m2!1sda!2sdk!4v1655049802848!5m2!1sda!2sdk" width="600" height="450" style="border:0;" allowfullscreen="" loading="lazy" referrerpolicy="no-referrer-when-downgrade"></iframe> ] [Back to STR](#str-presentation), [Back to results](#str-results) --- name: Rob_comp ## Robustness: Comparison groups .pull-left[ #### MA approach  ] .pull-right[ #### Dummy approach  ] [Back](#pop) .footnote[ **Definitions:** A: <5km to coast; B: Copenhagen excl.; C: Control >100 km from Limfj.; D: <5km to Market town ] --- name: all-paramMA ## Robustness: Parameter choices <img src="Figures/Multiverse_MA_param.png" width="60%" style="display: block; margin: auto;" /> [Back](#pop) --- name: pre_treat_adj ## Robustness: Pre-treat characteristics .pull-left[ - Using the doubly robust estimator from Callaway & Sant’Anna (2021). - Combines outcome regression with propensity score method. If either is valid, then the estimator is consistent. - Only corrects for pre-treatment characteristics **Columns:** (1): No adj.; (2): Adj. for age, occupation, fertility; (3): Adds log(Pop) as adj. ] .pull-right[  ] [Back](#pop) --- name: fish # Environmental impact [Back](#mechanism1)  --- name: newspapers # Newspapers .pull-left[ - Based on all newspapers in published in the period ] .pull-right[  ] --- name: instmech # Mechanism: Adaptation .pull-left[ [Back](#mechanism1) *Theoretical mystery desribed by Redding and Turner (2015)* #### Historiography: - 1840s: [New ports were constructed in all west Limfjord market towns](#new-ports) - 1841: Independent rights for international trade - 1852: First ever Danish steam route to England - 1856-1861: Construction of the Frederik VII canal at Løgstør - 1860-1900: [Railways](#railways1) and highways - 1875-1933: Groins to stabilise the channel (and coast) ] .pull-right[  *Milton (1884) Frederik VII canal*  *'Placat' announcing trade rights of Limfjord market towns* ] --- name: hisco # New occupational data [Back](#censusdata) .pull-left[ - Data censuses 1787-1901 contain occupational for some years (3.7 mio. observations) - Training data to train an automatic HISCO-label AI for all 12.4 mio. records. - Precision: 97.21%; Recall: 97.07% - Separate paper - please let me know if you have data ] .pull-right[ #### How it is applied here - Top 100 occupations are manually labelled as 'Fishing' or 'Manufacturing' - Used in a mediation analysis: Can either explain away the effect of the channel? - Manufacturing can! ]  --- class: center, middle name: appendixarch # Archaeological evidence details .footnote[ [Back](#arch) ] --- .pull-left[ ## About the data - Administrative database of all archaelogical sites and finds - Managed by ministry of culture - 321 generic types of findings. E.g. coins - 1940 dated sites with coins between 750 and 1500 - Panel construction: + **Innovation:** Monte Carlo to estimate `\(P_i(Coin|t)\)` + Probability that a coin finding was generated at a specific time ] .pull-right[ ## Data example   *Coins, wikimedia commons* ] .footnote[ [Back](#arch) ] --- # Estimator of coin probability .pull-left[ - **Objective:** We want to know *how likely it is that coin was left at a particular time `\(t\)`* - **What we have:** Observations of individual coin findings and a distribution of times `\(t\)`, which are likely for a specific coin finding in a place `\(i\)` **In equation form:** - What we have: `\(P_i(t|c)\)`: Probability of `\(t\)` given one coin - What we want: `\(P_i(\{c\}|t)\)`: Probability of *any* coins in time `\(t\)` ] -- .pull-right[ ### The solution Bayes formula and Monte Carlo - Simple to sample from this distribution - Sample `\(t\)` from each coin - Count frequency of coin findings `$$P(\{c\}|t)=\left[1-\prod_{c=1}^{K_i} \left( 1 - P(t|c) \right)\right] P(\{c\})$$` where it is assumed that `\(P(t|c)\sim \mathscr{U}(Year_{min}^c; Year_{max}^c)\)` or `\(P(t|c)\sim \mathscr{N}(\mu_c, \sigma_c),\)` `\(\sigma_c=\frac{(Year_{max}^c - Year_{min}^c)}{1.96}\)` ] --- ### All indicators  .footnote[ [Back](#arch) ] --- name: matching ### Soil type matching .pull-left[ - Soil types linked to medieval developmental trajectory (Andersen et al, 2016) - Using common soil types to estimate treatment propensity score with XGBoost - Soil from GEUS - West Limfjord matched to other parishes using greedy matching. ] .pull-right[ *Before* <img src="Figures/Propensity_before.png" width="80%" style="display: block; margin: auto;" /> *After* <img src="Figures/Propensity_after.png" width="80%" style="display: block; margin: auto;" /> ] --- name: matching_coins #### Coin findings (matched sample) <img src="Figures/arch_dummy_coins_matched.png" width="80%" style="display: block; margin: auto;" /> [Back](#arch1) --- name: matching_buildings #### Building findings (matched sample) <img src="Figures/arch_dummy_buildings.png" width="80%" style="display: block; margin: auto;" /> [Back](#arch2) --- ### Safer, more convenient harbours  *Dangerous loading on the west coast* --- # International trading rights (1/2) .pull-left[ **Two interpretations:** - Trading rights `\(\rightarrow\)` Growth - Channel `\(\rightarrow\)` Trading rights `\(\rightarrow\)` Growth *Trading rights can determine population growth* (Cermeño, Enflo 2019) - Two types of rights: + Market town rights (all comercial activity had to happen in these locations) + Customs rights (*toldsted*): Places where goods could be declared and taxed before it was traded on foreign markets ] .pull-right[  ] --- # International trading rights .pull-left[ **Timeline** **1657-1720:** General consumption tax in market towns and Dano-Swedish wars boosts timber/grain legal grey zone trade (*skudehandel*) between Thy and Norway. **1814:** Norway becomes Swedish. Illegal trade continues **1834-35:** Overwelming trade with even larger ships. Coastal watch established. Thisted becomes de facto customs town. **1837, 1840:** Petitions to the King for formal international trading rights for all market towns ] .pull-right[ **1841**: Full customs rights introduced to only Limfjord Market towns  ] .footnote[ Holm (1989); Fode (1989); Svalgaard (1977); Svalgaard (1974) ] --- # On the origin of the channel .pull-left[ - Gradual erosion is documented in Petersen (1877) as early as 1688. - Agger Church lost in 1832. - In the 16th century in the same period Christian II made it illegal to drive cattle across the Isthmus - Groins constructed from 1875 (Esbjerg).  .small123[*Mårup church demolition 2008*] ] .pull-right[ .center[ *Groins* <iframe src="https://www.google.com/maps/embed?pb=!1m14!1m12!1m3!1d15541.513031989105!2d8.187605907284134!3d56.6904893489832!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!5e1!3m2!1sen!2sdk!4v1695323661648!5m2!1sen!2sdk" width="600" height="450" style="border:0;" allowfullscreen="" loading="lazy" referrerpolicy="no-referrer-when-downgrade"></iframe> ] ] --- # Descriptive evidence - coins  --- # Alternative shipping statistics  *Descriptive statistics from Svalgaard (1977) sourced from customs archives*