Economics of the Time Zone: Let there Be Light Pavel Jelnov Abstract This paper is concerned with the causal eect of clock on economy. I explore the variation in the time zones of Russian administrative regions. During most of the last sixty years, Russia has implemented a policy of shifting time zones downward. Analyzing the 1995-2015 period, I estimate both immediate and lagged eects of clock reforms. My estimates show that Russia could gain at least 4% of GDP within ve years if it would, oppositely to what is mostly done, shift the time zones in some regions upward. While exploring channels, I nd better human and social capitals with the later clock: a lower consumption of beer and unhealthy food, less desease of the endocrine system, a much lower homicide rate, and much more visits to museums. On the other hand, birth defects would be more frequent and the overall health in the north of the country might worsen. Additionally, agricultural product in the north is signicantly lower with the later clock. JEL codes: I10, J21, O47 Pavel Jelnov Leibniz Universität Hannover Institut für Arbeitsökonomik Motiv Königsworther Platz 1 D-30167 Hannover, Germany e-mail:
[email protected] 1 1 Introduction Managing the clock is an important issue in political economy. Time zones and daylight saving time are dierently managed around the globe and discussions around the best clock do not seize in many countries. Spain lives in the Central European Time Zone, making travelers surprised by how late the locals go out for dinner. Historically, the reasons for such unnatural time zone in Spain are political.