Economic historian to discuss underestimated gains from transportation investments

Economic Historian to Discuss Underestimated Gains from Transportation Investments

Richard Hornbeck, an economic historian at the University of Chicago Booth School of Business, will deliver the 2025 Leon N. Moses Distinguished Lecture in Transportation at Northwestern University.

Lecture Details

Title: "Amplified gains from transportation infrastructure investments"
Date and Time: November 5, 7:30 p.m.
Location: 700 University Place, Evanston
Host: Northwestern University Transportation Center (NUTC)
Admission: Free and open to the public; registration encouraged

Key Themes of the Lecture

Hornbeck will challenge traditional economic models that underestimate the true impact of transportation investments. He argues that these models assume efficient markets, ignoring real-world conditions where markets can be uncompetitive and firms face financing difficulties.

“Ignoring broader economic distortions led to an understatement of the railroads’ contribution to economic growth.”

Using the example of U.S. railroad expansion in the late 1800s, Hornbeck illustrates how failing to consider market imperfections misses significant economic benefits.

About Richard Hornbeck

Hornbeck is the Duane Rath Professor of Economics at the University of Chicago, specializing in the historical development of the U.S. economy.

Author’s summary: Richard Hornbeck’s lecture highlights how conventional economic models often overlook the full benefits of transportation infrastructure by ignoring market imperfections and financing challenges.

Northwestern Now News — 2025-11-04