Documents de Treball de l ’ IEB 2010 / 35 FINANCIAL DEVELOPMENT AND CITY GROWTH : EVIDENCE FROM NORTHEASTERN AMERICAN CITIES , 1790-1870 *

Abstract

We find a positive and strong correlation between financial development and subsequent city growth in the Northeastern United States between 1790 and 1870. The correlation is robust to controls for geographical characteristics of the city, the percentage of population working in different sectors, and its initial population. Our estimates suggest that the… (More)