2020/12/29 by Monica Billio, Roberto Casarin, Billio, Monica +7
Economics, Econometrics and Finance · Agricultural and Biological Sciences · #Market Dynamics and Volatility #Climate Change Policy and Economics #Agricultural risk and resilience
paper · pdf · doi:10.48550/arxiv.2012.14693
This paper examines the impact of climate shocks on 13 European economies\nanalysing jointly business and financial cycles, in different phases and\ndisentangling the effects for different sector channels. A Bayesian Panel\nMarkov-switching framework is proposed to jointly estimate the impact of\nextreme weather events on the economies as well as the interaction between\nbusiness and financial cycles. Results from the empirical analysis suggest that\nextreme weather events impact asymmetrically across the different phases of the\neconomy and heterogeneously across the EU countries. Moreover, we highlight how\nthe manufacturing output, a component of the industrial production index,\nconstitutes the main channel through which climate shocks impact the EU\neconomies.\n