Economics at your fingertips  

Weather Shocks and Climate Change

Charles Fries and Francois Gourio ()
Additional contact information
Charles Fries: Federal Reserve Bank of Chicago

No 1159, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: Previous research has shown that weather shocks, i.e. temperature deviations from the long-run normal values, have significant effect on economic outcomes, such as employment or income, even in developed economies such as the United States. This evidence is often interpreted as reflecting limits to adaptation. We document large differences in the sensitivity of economic activity to weather shocks across regions within the US. We interpret these differences as reflecting adaptation choices that regions make given their specific climate. This leads us to use these reduced form estimates to estimate a simple structural model of adaptation. We can then use the model to infer the effect of projected climate change on production. We find that both the median losses and the identity of the losers from climate change vary substantially once adaptation is taken into account.

New Economics Papers: this item is included in nep-env
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in 2018 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

Page updated 2019-10-23
Handle: RePEc:red:sed018:1159