ISER’s Peter H. Larsen presents paper at the 2007 American Economics Association meeting in Chicago
by Kathleen McCoy |
UAA's Peter H. Larsen, along with his colleagues, Megan Harrod and Donald Waldman
of the University of Colorado Boulder, and Jefferey K. Lazo of the National Center
for Atmospheric Research, will present the results of their initial study examining
the aggregate effect of weather variability on particular sectors of the United States
economy at the American Economics Association meeting in Chicago on Friday, Jan. 5.
Incorporating 24 years of state-level sector economics data with 70 years of historical weather observation, the study found that the U.S. economic output varies by about 4 percent a year, or about $260 billion per year, as a result of annual weather variability.
The study focuses on 11 "super-sectors" of the economy: agriculture, communications, construction, manufacturing, mining, retail trade, services, transportation, utilities, whole sell trade, and FIRE (finance, insurance and real estate). The "super-sectors" with the greatest sensitivity are mining, agriculture, manufacturing, FIRE and utility.
The study shows that the economic output exhibits the greatest sensitivity to weather variability in California, New York, Colorado, Ohio and Alabama.
To review the entire paper, visit http://www.aeaweb.org/annual_mtg_papers/2007/conference_papers.php