Macroeconomic Spillovers of Weather Shocks across U.S. States

Emanuele Bacchiocchi, Andrea Bastianin and Graziano Moramarco

Papers from arXiv.org

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

Date: 2024-03, Revised 2024-04
New Economics Papers: this item is included in nep-env, nep-geo, nep-mac, nep-net and nep-ure
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http://arxiv.org/pdf/2403.10907 Latest version (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)
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2403.10907

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