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Global Climate Change and the Resurgence of Tropical Disease: An Economic Approach

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Author Info

  • Gollin, Douglas

    () (Williams College)

  • Zimmermann, Christian

    () (Federal Reserve Bank of St. Louis)

Abstract

We study the impact of global climate change on the prevalence of tropical diseases using a heterogeneous agent dynamic general equilibrium model. In our framework, households can take actions (e.g., purchasing bednets or other goods) that provide partial protection from disease. However, these actions are costly and households face borrowing constraints. Parameterizing the model, we explore the impact of a worldwide temperature increase of 3° C. We find that the impact on disease prevalence and especially output should be modest and can be mitigated by improvements in protection efficacy.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5042.

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Length: 18 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5042

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Keywords: DSGE models; climate change; tropical diseases; incomplete markets;

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References

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  1. Douglas Gollin & Christian Zimmermann, 2008. "Malaria: Disease Impacts and Long-Run Income Differences," Department of Economics Working Papers 2008-17, Department of Economics, Williams College.
  2. William A. Masters & Margaret S. McMillan, 2000. "Climate and Scale In Economic Growth," CID Working Papers 48, Center for International Development at Harvard University.
  3. Hoyt Bleakley, 2010. "Malaria Eradication in the Americas: A Retrospective Analysis of Childhood Exposure," American Economic Journal: Applied Economics, American Economic Association, vol. 2(2), pages 1-45, April.
  4. David Domeij & Jonathan Heathcote, 2004. "On The Distributional Effects Of Reducing Capital Taxes," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(2), pages 523-554, 05.
  5. Hoyt Bleakley, 2003. "Disease and Development: Evidence from the American South," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 376-386, 04/05.
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Cited by:
  1. Chen, Yu-Fu & Funke, Michael, 2010. "Global Warming And Extreme Events: Rethinking The Timing And Intensity Of Environmental Policy," SIRE Discussion Papers 2010-48, Scottish Institute for Research in Economics (SIRE).

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