On Thu, Feb 15, 2001 at 11:53:34AM -0500, Bryan Caplan wrote
> Sachs has popularized a strong finding: Distance from the equator
> explains a great deal of the variation in income *levels* between
> countries. The further from the equator, the richer countries are.
> There are also some parallel findings for growth - controlling for other
> factors, growth is slower in the tropics than in temperate zones.
>
> Question: What would controlling for racial composition do to these
> results? Clearly there is high collinearity between race and latitude,
> though modern transportation is weakening the connection. If you do
> both latitude and racial composition, what would happen? Does anyone
> have hard evidence on this?
One could look at Australia, wich has a quite large North-South spread,
with a relatively homogeneous population, and see if regional income
levels corelate with lattitude.
Krist
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Krist van Besien [EMAIL PROTECTED]