
Working Papers
Precipitation and Economic Growth
Michael Berlemann, Daniela Wenzel (2018),
CESifo Working Paper 7258, CESifo Munich.
CESifo Working Paper 7258, CESifo Munich.
In this paper we study the growth effects of precipitation in the short-, medium and the long-run, thereby distinguishing between country groups on differing levels of development. We use several different precipitation indicators and study linear as well as non-linear precipitation effects and employ three different rainfall datasets. We find significantly negative and long-lasting growth effects of dry periods especially for comparatively poor countries whereas overly wet periods mainly remain without effect.