To what extent can long-differencing capture adaptation?

Dalia Ghanem, Felix Pretis and Daniel Schuurman

No 404721, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: Understanding the degree to which we are able to adapt to climate change is central to economic assessments of future climate damages. Social scientists increasingly use comparisons between long-difference and panel fixed effects estimators to measure climate adaptation. Despite their empirical relevance, there is no formal framework to assess the extent to which these comparisons are valid. We demonstrate two limitations of this empirical strategy. First, standard implementations of these estimators yield biased estimates of both long-run and short-run population parameters. Second, the direction of this bias may substantially underestimate adaptation. We illustrate the empirical relevance of our theoretical results in an empirically-calibrated simulation design and an empirical application.

Keywords: Research; Methods/; Statistical; Methods (search for similar items in EconPapers)
Pages: 12
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/404721/files/1 ... Differences_AAEA.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404721

DOI: 10.22004/ag.econ.404721

Access Statistics for this paper

More papers in 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().