Neighbors, networks, and the development of transport systems: Explaining the diffusion of turnpike trusts in eighteenth-century England

Turnpike trusts were widely employed organizations that improved and maintained toll roads in eighteenth-century England. They were created by acts of Parliament and were promoted by local landowners and merchants. The first turnpike was established in 1663, but they were not widespread until 1770. This paper uses survival analysis to show that network effects and inter-city competition greatly influenced the diffusion of turnpikes. The results show that cities were more likely to adopt turnpikes if other turnpikes were adopted along their route to London and cities were less likely to adopt when their close competitors adopted. More generally, the findings illustrate the importance of interaction effects under decentralization.