Macroeconomic Spillovers of Weather Shocks across U.S. States

Emanuele Bacchiocchi, Andrea Bastianin and Graziano Moramarco

No 343506, FEEM Working Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: We estimate the short-run effects of severe weather shocks on local economic activity and assess cross-border spillovers operating through economic linkages between U.S. States. We measure weather shocks using a detailed county-level database on emergency declarations triggered by natural disasters and estimate their impacts with a monthly Global Vector Autoregressive (GVAR) model for the U.S. States. Impulse responses highlight significant country-wide macroeconomic effects of weather shocks hitting individual regions. We also show that (i) taking into account economic interconnections between states allows capturing much stronger spillover effects than those associated with mere spatial adjacency, (ii) geographical heterogeneity is critical for assessing country-wide effects of weather shocks, and (iii) network effects amplify the local impacts of these shocks.

Keywords: Climate Change; Resource/Energy Economics and Policy; Sustainability (search for similar items in EconPapers)
Pages: 30
Date: 2024-06-14
New Economics Papers: this item is included in nep-env and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/343506/files/NDL2024-09.pdf (application/pdf)

Related works:
Working Paper: Macroeconomic Spillovers of Weather Shocks across U.S. States (2024)
Working Paper: Macroeconomic Spillovers of Weather Shocks across U.S. States (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:feemwp:343506

DOI: 10.22004/ag.econ.343506

Access Statistics for this paper

More papers in FEEM Working Papers from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().