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Lightning, IT Diffusion, and Economic Growth Across U.S. States

Author

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  • Thomas Barnebeck Andersen

    (Department of Business and Economics, University of Southern Denmark)

  • Jeanet Bentzen

    (Department of Economics, University of Copenhagen)

  • Carl-Johan Dalgaard

    (Department of Economics, University of Copenhagen)

  • Pablo Selaya

    (Department of Economics, University of Copenhagen)

Abstract

Empirically, a higher frequency of lightning strikes is associated with slower growth in labor productivity across the 48 contiguous U.S. states after 1990; before 1990, there is no correlation between growth and lightning. Other climate variables (e.g., temperature, rainfall, and tornadoes) do not conform to this pattern. A viable explanation is that lightning influences IT diffusion. By causing voltage spikes and dips, a higher frequency of ground strikes leads to damaged digital equipment and thus higher IT user costs. Accordingly, the flash density (strikes per square kilometer per year) should adversely affect the speed of IT diffusion. We find that lightning indeed seems to have slowed IT diffusion, conditional on standard controls. Hence, an increasing macroeconomic sensitivity to lightning may be due to the increasing importance of digital technologies for the growth process. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Thomas Barnebeck Andersen & Jeanet Bentzen & Carl-Johan Dalgaard & Pablo Selaya, 2012. "Lightning, IT Diffusion, and Economic Growth Across U.S. States," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 903-924, November.
    • Handle: RePEc:tpr:restat:v:94:y:2012:i:4:p:903-924
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    9. Wernsdorf, Kathrin & Nagler, Markus & Watzinger, Martin, 2022. "ICT, collaboration, and innovation: Evidence from BITNET," Journal of Public Economics, Elsevier, vol. 211(C).
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    15. Rezki, Jahen F., 2023. "Does the mobile phone affect social development? Evidence from Indonesian villages," Telecommunications Policy, Elsevier, vol. 47(3).
    16. Kathrin Wernsdorf & Markus Nagler & Martin Watzinger, 2020. "ICT, Collaboration, and Science-Based Innovation: Evidence from BITNET," CESifo Working Paper Series 8646, CESifo.
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    18. Flückiger, Matthias & Ludwig, Markus, 2023. "Mobile phone coverage and infant mortality in sub-Saharan Africa," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 462-485.
    19. Ponnusamy, Sundar & Trinh, Trong-Anh, 2025. "The impact of mobile internet on student cognitive performance during COVID: Evidence from Pakistan," Economics of Education Review, Elsevier, vol. 106(C).
    20. Areendam Chanda & Bibhudutta Panda, 2011. "Productivity Growth in Goods and Services across US States: What can We Learn from Factor Prices?," Departmental Working Papers 2011-16, Department of Economics, Louisiana State University.
    21. Rezki, Jahen Fachrul, 2018. "Call Your Leader: Does the Mobile Phone Affect Policymaking?," SocArXiv 3s784, Center for Open Science.
    22. Caldarola, Bernardo & Grazzi, Marco & Occelli, Martina & Sanfilippo, Marco, 2023. "Mobile internet, skills and structural transformation in Rwanda," Research Policy, Elsevier, vol. 52(10).
    23. Andersen, Thomas Barnebeck & Dalgaard, Carl-Johan, 2013. "Power outages and economic growth in Africa," Energy Economics, Elsevier, vol. 38(C), pages 19-23.
    24. Bernardo Caldarola & Luca Fontanelli, 2024. "Cloud technologies, firm growth and industry concentration: Evidence from France," LEM Papers Series 2024/25, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    25. Enrico Nano, 2022. "Electrifying Nigeria: the Impact of Rural Access to Electricity on Kids' Schooling," IHEID Working Papers 03-2022, Economics Section, The Graduate Institute of International Studies.

    More about this item

    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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