Description
For my PhD research, I study the local economic impacts of extreme weather events and the role of local financial structure in economic resilience. I approach this topic through several case studies. For the case of China, we use data on the physical intensities of extreme wind and precipitation events for 284 prefecture-level cities between 2004 and 2013. We estimate dynamic responses of affected cities up to five years after an event. Extreme precipitation events depress the growth of local GDP per capita for multiple years, while the negative effects of storms vanish after the first year. We then use this model to measure the resilience of affected cities. Regressions of economic resilience on indicators of local financial structure suggest that cities with higher levels of pre-event debt are less resilient, while the presence of state-owned commercial banks appears conducive to resilience.A case study of the US is in progress. Here, we test whether financial institutions with strong local ties, such as community banks, mitigate these costs associated with extreme weather shocks. We use quarterly county-level information on property damages from SHELDUS for the period 2003-2020, and a comparative interrupted time series identification strategy. We propose to instrument for extreme weather property damage using actual weather conditions. As extreme weather events are expected to become more frequent and severe due to climate change, our results inform the emerging debate about regional economic resilience to weather-related shocks.
| Period | 8 Feb 2023 |
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| Held at | School of Public Affairs, Watt's College of Public Service and Community Solutions, Arizona State University, United States |