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Review of Economic Studies Vol. 83 No. 4 2016

Climate and the Emergence of Global Income Differences

Thomas Barnebeck Andersen1; Carl-Johan Dalgaard2,3; Pablo Selaya2

1 University of Southern Denmark · 2 University of Copenhagen · 3 Center for Economic and Policy Research

Abstract

The latitude gradient in comparative development is a striking fact: as one moves away from the equator, economic activity rises. While this regularity is well known, it is not well understood. In the present paper we take a step towards unpacking this gradient. Perhaps the strongest correlate with (absolute) latitude is the intensity of ultraviolet radiation (UV-R), which epidemiological research has shown to be a cause of a wide range of diseases. We establish that UV-R is strongly and negatively correlated with economic activity, both across and within countries. We propose, and test, a mechanism that links UV-R to current income differences via the impact of disease ecology on the timing of the take-off to sustained growth.

DOI
10.1093/restud/rdw006
Volume
83
Issue
4
Pages
1334-1363
Language
en
Sources
bibtex:phds-export.bib crossref openalex

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