Take a look at the map above. At first glance, you might think it’s showing countries as warmer or colder; in reality, it is a map of countries by their income per capita. An unusual trend becomes obvious: warmer countries tend to be poorer. It is easy to point out the U.S. and Europe are colder and wealthier than Africa or India. But the trend continues the more you narrow down: Denmark is colder and wealthier than England, which is colder and wealthier than Spain.

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Even within countries, the U.S. South is poorer (and warmer) than New England. Southern Italy is poorer (and warmer) than Northern Italy. Of course, there are exceptions, like Australia. But still, this unusual trend must be something more than a coincidence.

One reason behind this phenomenon could be what academics call “inclusive institutions.” One might think that warmer areas, rich with fertile land, minerals, and cash crops, would translate into wealth. After all, humanity’s first civilizations........

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