Seasons, savings and GDP
The industrial revolution and the subsequent industrialization of the economies occurred Orst in temperate regions. We argue that this and the associated positive correlation between absolute latitude and GDP per capita is due to the fact that countries located far from the equator suffered more pro...
- Autores:
- Tipo de recurso:
- Fecha de publicación:
- 2008
- Institución:
- Universidad del Rosario
- Repositorio:
- Repositorio EdocUR - U. Rosario
- Idioma:
- spa
- OAI Identifier:
- oai:repository.urosario.edu.co:10336/10936
- Acceso en línea:
- https://doi.org/10.48713/10336_10936
http://repository.urosario.edu.co/handle/10336/10936
- Palabra clave:
- Producción
absolute latitude
seasons
endogenous growth
capital using innovations
Desarrollo económico
Crecimiento endógeno (Economía)
Ahorro e inversión
Activos de capital
Producto interno bruto. pib
- Rights
- License
- http://purl.org/coar/access_right/c_abf2
| Summary: | The industrial revolution and the subsequent industrialization of the economies occurred Orst in temperate regions. We argue that this and the associated positive correlation between absolute latitude and GDP per capita is due to the fact that countries located far from the equator suffered more profound seasonal auctuations in climate, namely stronger and longer winters. We propose a growth model of biased innovations that accounts for these facts and show that countries located in temperate regions were more likely to create or adopt capital intensive modes of production. The intuition behind this result is that savings are used to smooth consumption; therefore, in places where output auctuations are more profound, savings are bigger. Because the incentives to innovate depend on the relative supply factors, economies where savings are bigger are more likely to create or adopt capital intensive technologies. |
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