Did Slavery Impede the Growth of American Capitalism? Two Natural Experiments Using Farm Values per Acre

Joseph A. Francis

MPRA Paper from University Library of Munich, Germany

Abstract: Two natural experiments challenge the view that slavery impeded the growth of American capitalism. An event study shows that farm values fell relative to the national average in slave states following abolition. A spatial regression discontinuity design (RDD) then suggests that any negative effects of slavery’s legality on farm values on the free-slave state border were counteracted by the institution’s practical utility. An explanation of these results can also be advanced: slavery provided a relatively cheap agricultural labor force in parts of the South where white Americans preferred not to settle. From this perspective, the growth of American capitalism was promoted rather than impeded by slavery.

Keywords: economic history; event study; spatial regression discontinuity design; slavery; United States (search for similar items in EconPapers)
JEL-codes: J47 N11 N21 N51 O43 (search for similar items in EconPapers)
Date: 2025-04-12
New Economics Papers: this item is included in nep-agr and nep-his
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https://mpra.ub.uni-muenchen.de/124550/1/MPRA_paper_124550.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/124693/1/MPRA_paper_124693.pdf revised version (application/pdf)

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