Nov
27
Productivity and Climate Change Adaptation in a Spatial Economy
This blog post builds on my last post on a related topic. My critics say to me; "Matt, our centers of productivity are located in coastal places and these places face ever increasing climate risks. In a Paul Krugman style "History versus Expectations" economy, we have built our productive hubs in places that are now under siege and our economy could be wiped out by future punches." Note that these persistence pessimists downplay the role of Expectations. Lucas lives on. Capital is finite lived and there is always a new generation of young people. They don't need to follow the herd and sink as the seas rise.
My counter-points takes several forms;
First, I can point to my 2017 JUE paper on Chinese Industrial Parks.
My counter-points takes several forms;
First, I can point to my 2017 JUE paper on Chinese Industrial Parks.