The First U.S. Transcontinental Railroad: Expected Profits and Government Intervention
研究了美国第一条横贯大陆铁路的联邦补贴是否必要，发现投资者预期铁路盈利，补贴主要用于降低政治风险而非纠正市场失灵。
Construction of the first transcontinental railroad, financed with large federal subsidies, is an important event in American history. Were the subsidies necessary to induce private investment in the railroad? The ex-ante investment decision examined uses contemporary reports and a simulation model to show that investors expected the railroad to be profitable. Evidence also shows that the railroad created political conflicts in Congress between the North and South. The secession removed the South as a disputant in Congress, reducing short-term political conflict but not long-term conflict. Subsidies reduced political risk, rather than transport market failure, and encouraged private investment.