"Starting with Miguel, Satyanath, and Sergenti (2004), a large literature has used rainfall variation as an instrument to study the impacts of income shocks on civil war and conflict. These studies argue that in agriculturally-dependent regions, negative rain shocks lower income levels, which in turn incites violence. This identiÂ…cation strategy relies on the assumption that rainfall shocks affect conflict only through their impacts on income."
The more people trust each other, the more productive they are.
