Published Online: Aug 28, 2019
Page range: 230 - 243
DOI: https://doi.org/10.1515/ceej-2018-0020
Keywords
© 2018 K. Kobylinski, J. Tyrowicz, published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.
An examination of the correlation between health and wealth cannot determine the direction of causality between the two. Countries’ geographic characteristics have an important effect on health, and they are plausibly uncorrelated with other determinants of wealth. This paper uses two climate variables – population-weighted temperature and precipitation – to obtain instrumental variables estimates of the effect of health on wealth.