Sunlight, Disease, and Institutions

Abstract

Higher exposure to ultraviolet radiation (UV-R) is associated with greater prevalence of eye disease such as cataracts. We hypothesize that the variation in the intensity of UV-R can help explain the differences in institutional quality observed across countries. The long-term incentive and ability to improve the quality of institutions decline when the probability of blindness increases. Our reduced-form cross-country results support this hypothesis. We then propose that the mechanism works from the impact of UV-R on the prevalence of eye disease, which in turn shapes institutions. Our empirical evidence lends considerable support to this hypothesis.