Geoffrey Heal, Columbia University: "Feeling the Heat: Temperature, Physiology & the Wealth of Nations"
ESOP seminar. Geoffrey Heal is the Donald C. Waite III Professor of Social Enterprise, Professor of Economics and Finance at Columbia University. He will present a paper entitled "Feeling the Heat: Temperature, Physiology & the Wealth of Nations", written jointly with Jisung Park.
Geoffrey Heal. Photo: Columbia University.
"Does temperature affect economic performance directly? This paper attempts to bridge micro-level studies of thermal stress and task performance with macroeconomic studies of long-run growth, by presenting a microeconomic model of labor supply under thermal stress and using panel data to identify temperature-driven productivity impacts at the international and sub-national level. We find that the effect of a hotter year on income and implied TFP varies with a region’s position relative to the optimal temperature, so that a positive temperature shock leads to a drop in productivity in hot regions and a rise in cold ones."
Host: Bård Harstad