Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300190 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 09.2024
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
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.
Subjects: 
Global VAR
natural disasters
spillovers
weather shocks
United States
climate change
JEL: 
C32
R11
Q51
Q54
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.