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Lightning, IT Diffusion and Economic Growth across US States

  • Thomas Barnebeck Andersen

    (Department of Economics, University of Copenhagen)

  • 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)

Empirically, a higher frequency of lightning strikes is associated with slower growth in labor productivity across the 48 contiguous US 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 km 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.

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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 09-18.

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Length: 28 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:kud:kuiedp:0918
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