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New results on the influence of climate on the distribution of population and economic activity

  • Füssel, Hans-Martin
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    This paper applies G-Econ+, an updated version of the G-Econ database by Nordhaus, to analyze the influence of climatic and geographic factors on the geographic distribution of population and economic activity. I discuss options for improved treatment of several statistical problems associated with G-Econ, which are not addressed adequately in the original G-Econ analysis. Reanalysis of key results from the original G-Econ analysis corrects some surprising results therein. Extensive sensitivity analysis determines the robustness of the relationship between climatic factors and economic activity across alternative central estimators. Further analysis assesses revealed climatic preferences of population, the effects of climate parameters on different quantiles of economic variables, and synergies between temperature and precipitation. I find that population density has a much stronger influence on output density than output per capita. Furthermore, least developed countries are located in a climatic zone where all indicators of economic activity decline with increasing temperature.

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    File URL: http://mpra.ub.uni-muenchen.de/13788/1/MPRA_paper_13788.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13788.

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    Date of creation: 04 Mar 2009
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    Handle: RePEc:pra:mprapa:13788
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    1. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2009. "Temperature and Income: Reconciling New Cross-Sectional and Panel Estimates," American Economic Review, American Economic Association, vol. 99(2), pages 198-204, May.
    2. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
    3. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," NBER Working Papers 9305, National Bureau of Economic Research, Inc.
    4. Willard G. Manning & John Mullahy, 1999. "Estimating Log Models: To Transform or Not to Transform?," NBER Technical Working Papers 0246, National Bureau of Economic Research, Inc.
    5. Manning, Willard G. & Basu, Anirban & Mullahy, John, 2005. "Generalized modeling approaches to risk adjustment of skewed outcomes data," Journal of Health Economics, Elsevier, vol. 24(3), pages 465-488, May.
    6. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
    7. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-71, September.
    8. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2008. "Climate Change and Economic Growth: Evidence from the Last Half Century," NBER Working Papers 14132, National Bureau of Economic Research, Inc.
    9. Mullahy, John, 1998. "Much ado about two: reconsidering retransformation and the two-part model in health econometrics," Journal of Health Economics, Elsevier, vol. 17(3), pages 247-281, June.
    10. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
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