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Estimating Ricardian Models With Panel Data

Author

Listed:
  • EMANUELE MASSETTI

    () (Yale School of Forestry and Environment Studies, FEEM and CMCC, 195 Prospect St, New Haven, CT 06515, USA)

  • ROBERT MENDELSOHN

    () (Yale University, Yale School of Forestry and Environmental Studies, 195 Prospect St., New Haven, CT 06515, USA)

Abstract

Although the Ricardian model is a cross sectional method, there are advantages to estimating the model with additional years of data. For instance, with a panel, one can more easily separate events in a single year (e.g. weather and price shocks) from longer term phenomenon such as climate. Many early studies used repeated cross sections to study panel data but one can get consistently better performance from panel methods. In this paper, we rely on two panel methods to estimate the Ricardian function for the United States across time. The results suggest that moderate warming scenarios would benefit American agriculture as a whole but more extreme climate scenarios would be damaging.

Suggested Citation

  • Emanuele Massetti & Robert Mendelsohn, 2011. "Estimating Ricardian Models With Panel Data," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(04), pages 301-319.
  • Handle: RePEc:wsi:ccexxx:v:02:y:2011:i:04:n:s2010007811000322
    DOI: 10.1142/S2010007811000322
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    References listed on IDEAS

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    Cited by:

    1. Bezabih, Mintewab & Di Falco, Salvatore & Mekonnen, Alemu, 2014. "On the Impact of Weather Variability and Climate Change on Agriculture: Evidence from Ethiopia," Discussion Papers dp-14-15-efd, Resources For the Future.
    2. repec:uwp:landec:v:93:y:2017:i:4:p:631-653 is not listed on IDEAS
    3. Dono, Gabriele & Cortignani, Raffaele & Giraldo, Luca & Pasqui, Massimiliano & Roggero, Pier Pao, 2014. "Income Impacts of Climate Change: Irrigated Farming in the Mediterranean and Expected Changes in Probability of Favorable and Adverse Weather Conditions," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(3).
    4. Steven Passel & Emanuele Massetti & Robert Mendelsohn, 2017. "A Ricardian Analysis of the Impact of Climate Change on European Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 725-760, August.
    5. Kaixing Huang, 2015. "The Economic Impacts of Global Warming on Agriculture: the Role of Adaptation," School of Economics Working Papers 2015-20, University of Adelaide, School of Economics.
    6. Christopher Severen & Christopher Costello & Olivier Deschenes, 2016. "A Forward Looking Ricardian Approach: Do Land Markets Capitalize Climate Change Forecasts?," NBER Working Papers 22413, National Bureau of Economic Research, Inc.
    7. repec:cup:endeec:v:23:y:2018:i:02:p:139-160_00 is not listed on IDEAS
    8. Mintewab Bezabih & Salvatore Di Falco & Alemu Mekonnen, 2014. "Is it the climate or the weather? Differential economic impacts of climatic factors in Ethiopia," GRI Working Papers 148, Grantham Research Institute on Climate Change and the Environment.
    9. Dale T. Manning & Christopher Goemans & Alexander Maas, 2017. "Producer Responses to Surface Water Availability and Implications for Climate Change Adaptation," Land Economics, University of Wisconsin Press, vol. 93(4), pages 631-653.
    10. Heman D. Lohano, "undated". "Weather Variability, Agricultural Revenues and Internal Migration: Evidence from Pakistan," Working papers 99, The South Asian Network for Development and Environmental Economics.
    11. Emanuele Massetti & Robert Mendelsohn, 2017. "Do Temperature Thresholds Threaten American Farmland?," Working Papers 2017.43, Fondazione Eni Enrico Mattei.
    12. Massetti, Emanuele & Mendelsohn, Robert & Chonabayashi, Shun, 2016. "How well do degree days over the growing season capture the effect of climate on farmland values?," Energy Economics, Elsevier, vol. 60(C), pages 144-150.
    13. Alemu Mekonnen, 2014. "Economic Costs of Climate Change and Climate Finance with a Focus on Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 23(suppl_2), pages 50-82.
    14. Huang, Kaixing & Wang, Jinxia & Huang, Jikun & Findlay, Christopher, 2018. "The potential benefits of agricultural adaptation to warming in China in the long run," Environment and Development Economics, Cambridge University Press, vol. 23(02), pages 139-160, April.
    15. Karen Fisher-Vanden & Ian Sue Wing & Elisa Lanzi & David Popp, 2013. "Modeling climate change feedbacks and adaptation responses: recent approaches and shortcomings," Climatic Change, Springer, vol. 117(3), pages 481-495, April.
    16. Kaixing Huang, 2016. "The Economic Impacts of Global Warming on US Agriculture: the Role of Adaptation," School of Economics Working Papers 2016-03, University of Adelaide, School of Economics.
    17. Meyer, Kevin Michael, 2017. "Three essays on environmental and resource economics," ISU General Staff Papers 201701010800006585, Iowa State University, Department of Economics.
    18. Tsvetan Tsvetanov & Lingqiao Qi & Deep Mukherjee & Farhed Shah & Boris Bravo-Ureta, 2016. "Climate Change And Land Use In Southeastern U.S.: Did The “Dumb Farmer” Get It Wrong?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-35, August.

    More about this item

    Keywords

    Climate change; impacts; agriculture; United States;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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