The Compound Steam Engine and Productivity Changes in the German Merchant Marine Fleet, 1871–1887

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Abstract
The compound steam engine was one of the majorthe substitution of steam for sail in ocean transportation. This factors inarticle is an inquiry into the productivity effects of the adoption and diffusion of this innovation in the German merchant marine fleet between 1871 and 1887. A number of relevant questions may be raised: What was the change in total industry productivity? How much of the total productivity change resulted from the diffusion of the compound engine? How much resulted from improvement of the engine itself during this period and how much from improvements in sailing ship technology? Answers to these questions may provide fresh insight into the controversial issues of the ascendancy of the sailing ship in ocean transportation and the contribution of changes in sailing ship productivity to the decline of ocean freight rates after 1870.

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