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Insights on distributive politics from a new way to measure aridity

Economic studies of drought episodes typically use rainfall as a proxy for water scarcity, yet this is likely to lead to an endogeneity problem due to the correlation of variables that affect water scarcity (such as temperature and soil moisture) with relevant economic choices (such as which crops to grow or where to settle). This column presents an index that overcomes
United States Advisory Paper For Group Economic Geography Standardised Precipitation Index Special Issue Economic Policy
Source: voxeu.org

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