% WARNING: This file may contain UTF-8 (unicode) characters. % While non-8-bit characters are officially unsupported in BibTeX, you % can use them with the biber backend of biblatex % usepackage[backend=biber]{biblatex} @techreport{NBERw25447, title = "Spatial Correlation, Trade, and Inequality: Evidence from the Global Climate", author = "Dingel, Jonathan I and Meng, Kyle C and Hsiang, Solomon M", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "25447", year = "2019", month = "January", doi = {10.3386/w25447}, URL = "http://www.nber.org/papers/w25447", abstract = {This paper shows that greater global spatial correlation of productivities can increase cross-country welfare dispersion by increasing the correlation between a country’s productivity and its gains from trade. We validate this prediction using a global climatic phenomenon as a natural experiment. We find that gains from trade in cereals over the last half-century were larger for more productive countries and smaller for less productive countries when cereal productivity was more spatially correlated. Incorporating this role for spatial interdependence into a projection of climate-change impacts raises projected international inequality, with higher welfare losses across most of Africa.}, }