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"German industrial expansion in the period 1880-1913 was significantly more rapid than that of the United Kingdom, and substantially less volatile than that of the United States. A partial explanation for the relatively stable growth path of the German economy during these years may be found in the greater relative importance and volatility of the railroad construction component of net investment in the United States. By 1880 only a little over one-third of the U.S. final rail net was in place, compared with over half in the case of Germany. Compared to Germany, railroad investment in the United States between 1880 and World War I was, on average, much larger absolutely. It was also much larger in comparison to total population, total industrial output, and in comparison to expenditures on residential construction. In addition, it was more volatile. The lesser importance and volatility of this component of autonomous expenditure in the German case partially accounts for the relative nonvolatility of the German industrial Output series." (author's abstract)