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The Long-Lived Effects of Historic Climate on the Wealth of Nations

Author

Listed:
  • Michael Vlassopoulos

    (University of Southampton)

  • Akos Valentinyi

    (Hungarian Central Bank)

  • John C. Bluedorn

    (University of Southampton)

Abstract

Although a reduced-form approach allows us to recover robust, general patterns in the relationship, it does not allow us to resolve the exact mechanism by which historic temperature affects current incomes. To shed some light on the mechanism we build a simple model of growth of physical and human capital to investigate how much income difference a temperature shock can generate over 150 years. To calibrate the growth effect of temperature shocks we use result from Dell, Jones, and Olken (2008) who estimated the contemporaneous growth effect climate shocks on post 1950 data. The calibrated model generates roughly the same size of income difference over a period of 150 years what we estimated using historical temperature data.

Suggested Citation

  • Michael Vlassopoulos & Akos Valentinyi & John C. Bluedorn, 2010. "The Long-Lived Effects of Historic Climate on the Wealth of Nations," 2010 Meeting Papers 627, Society for Economic Dynamics.
  • Handle: RePEc:red:sed010:627
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    References listed on IDEAS

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    Cited by:

    1. Fenske, James & Kala, Namrata, 2012. "Climate, ecosystem resilience and the slave trade," MPRA Paper 38398, University Library of Munich, Germany.
    2. Fenske, James & Kala, Namrata, 2015. "Climate and the slave trade," Journal of Development Economics, Elsevier, vol. 112(C), pages 19-32.

    More about this item

    JEL classification:

    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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