The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Economic Consequences of Weather, The

  • Jordan Rappaport
Reference work entry


Households in the United States and a number of other wealthy nations have been migrating to places with nice weather. This likely reflects an increase in the relative valuation of the weather’s direct contribution to household utility. Several different amenity explanations are discussed that can account for the increased valuation and ongoing move.


Compensating differentials Consumption amenities Local growth Migration Weather 

JEL Classifications

R11 R12 R13 R23 
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The views herein are those of the author and do not necessarily reflect the position of the Federal Reserve Bank of Kansas City or the Federal Reserve System. Thank you to Yi Li for excellent research assistance.


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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Jordan Rappaport
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