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Technical appendix : Integrated economic analysis

This report attempts to provide insight into the potential impacts of climate change in a range of economic sectors and at fine temporal and geographical scales. This includes both the immediate physical impact of climate change, as well as its broader economic ramifications. For example, farmers in the Midwest may experience changes in crop and labor productivity (the physical impacts) due to changes in temperature and precipitation. Changes in the value of the agriculture sector output (the direct costs and benefits) will impact a greater number of people as that value is removed from (or added to) the local economy. Finally, macroeconomic effects such as changes in prices, in cross-regional and cross-sectoral investment, and in longrun growth stemming from lost productivity and stranded capital assets may lessen or amplify these direct costs and benefits. Technical Appendices I, II, and III describe the methodologies used in this report to estimate physical impacts. This appendix describes the methodology used to estimate direct costs and benefits and their broader macroeconomic effects.