Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/233089 
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 004.2021
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
I propose a new conceptual framework to disentangle the impacts of weather and climate on economic activity and growth: A stochastic frontier model with climate in the production frontier and weather shocks as a source of inefficiency. I test it on a sample of 160 countries over the period 1950-2014. Temperature and rainfall determine production possibilities in both rich and poor countries; positively in cold countries and negatively in hot ones. Weather anomalies reduce inefficiency in rich countries but increase inefficiency in poor and hot countries; and more so in countries with low weather variability. The climate effect is larger that the weather effect.
Subjects: 
Climate Change
Weather Shocks
Economic Growth
Stochastic Frontier Analysis
JEL: 
D24
O44
O47
Q54
Document Type: 
Working Paper

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