EconBase
← All papers

The impact of Climate on Economic and Financial Cycles: A Markov-switching Panel Approach

Monica Billio, Roberto Casarin, Enrica De Cian, Malcolm Mistry, Anthony Osuntuyi

arXiv 29 Dec 2020 · Econometrics · 6 citations (OpenAlex)

arXiv:2012.14693 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper examines the impact of climate shocks on 13 European economies analysing jointly business and financial cycles, in different phases and disentangling the effects for different sector channels. A Bayesian Panel Markov-switching framework is proposed to jointly estimate the impact of extreme weather events on the economies as well as the interaction between business and financial cycles. Results from the empirical analysis suggest that extreme weather events impact asymmetrically across the different phases of the economy and heterogeneously across the EU countries. Moreover, we highlight how the manufacturing output, a component of the industrial production index, constitutes the main channel through which climate shocks impact the EU economies.

Citation extraction

70
references
89
in-text mentions
70
distinct cited
0
self-citations
19,561
main-text words

appendix boundary found by none_found · 100% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Chow GC, Lin AI (1971) Best linear unbiased interpolation, distribution, and extrapolation of time series by related series0.87462100%
2Mistry MN (2019) A high resolution global gridded historical dataset of climate extreme indices0.84333100%
3Borio C (2014) The financial cycle and macroeconomics: What have we learnt?0.73732100%
4Gallic E, Vermandel G (2020) Weather shocks0.73732100%
5Acevedo S, Mrkaic M, Novta N, Pugacheva E, Topalova P (2018) The effects of weather shocks on economic activity: What are the channels of impact?0.64422100%
6Harding D, Pagan A (2002) Dissecting the cycle: A methodological investigation0.64422100%
7McKee TB, Doesken NJ, Kleist J, et al (1993) The relationship of drought frequency and duration to time scales0.64422100%
8Frühwirth-Schnatter S, Kaufmann S (2008) Model-based clustering of multiple time series0.64422100%
9Claessens S, Kose MA, Terrones ME (2011) Financial Cycles: What? How? When? Technical report, IMF Working Paper No WP/11/760.51121100%
10Drehmann M, Borio CE, Tsatsaronis K (2012) Characterising the financial cycle: don't lose sight of the medium term!0.51121100%

Showing the top 10 of 70 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
12403.109070.40511