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Description

We examine the bias resulting from temporal and spatial aggregation of weather variables in environmental economics. In order to include temporally and/or spatially continuous environmental variables (such as temperature and

We examine the bias resulting from temporal and spatial aggregation of weather variables in environmental economics. In order to include temporally and/or spatially continuous environmental variables (such as temperature and precipitation), many studies discritize them. The finer the scale of discrization chosen, the more difficult it can be to obtain a complete and reliable data set. Studies performed at very fine scales often find tighter and more dramatic relationships between variables such as temperature and income per capita.

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