Fiscal Policy's Role in Economic Resilience to Climate Shocks (English)

Table of Contents

• Armon Rezai Franz Ruch 1
• Rishabh Choudhary 1
• John Nana Darko Francois 1
• 𝑦 𝑦 𝛼 𝑇 𝛱 𝐿𝑥 𝛽 𝑠ℎ𝑜𝑐𝑘 𝜇 10
• 𝛼 𝑇 𝑥 10
• 𝑦 𝑠ℎ𝑜𝑐𝑘 10
• 𝑦 𝑦 10
• 𝑦 𝑦 1 𝐹𝑧 𝛼 𝑇 𝛱 𝐿𝑥 𝛽 𝑠ℎ𝑜𝑐𝑘 𝜇 11
• 𝐹𝑧 𝛼 𝑇 𝛱 𝐿𝑥 𝛽 𝑠ℎ𝑜𝑐𝑘 𝜇 11
• 𝐹𝑧 𝑧 11
• 𝐼𝑛𝑡𝑒𝑛𝑠𝑖𝑡𝑦 𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑎𝑡ℎ𝑠 0.3 𝑇𝑜𝑡𝑎𝑙 𝑎𝑓𝑓𝑒𝑐𝑡𝑒𝑑 12
• 𝑃𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 12
• I t 12
• Figure 1. Distribution of natural disasters over time and across regions 22
• Figure 2. Impact of natural disasters on output 23
• Table 1. Data sources 25
• Variable name Description Transformation Source 25
• Source Note 25
• Table 2. The macroeconomic effects of a 5 percent climate-induced shock to capital stock 26
• Sources Note . 26
• Table 3. The macroeconomic effects of a 5 percent climate-induced shock to capital stock 27
• Sources Note 27
• Table 4. The macroeconomic effects of a 5 percent climate-induced shock to capital stock 28
• Sources Note 28
• Table 5. The macroeconomic effects of a 5 percent climate-induced shock to capital stock 29
• Sources Note . 29
• Table 6. The macroeconomic effects of a 5 percent climate-induced shock to capital stock 30
• Source Note 30
• References 31
• Journal of Financial Intermediation 19 31
• Assessing the Costs of Climate Change and Adaptation in South Asia. 31
• Economics Letters 3 31
• Review of Environmental Economics and Policy 13 31
• Journal of Applied Econometrics 28 31
• Assessing Government Self-Insurance Needs against Natural Disasters An Application to the ECCU. IMF Country Report 16333. 31
• Economic Modelling 31
• Progress in Disaster Science 10 31
• Climate Risk Management 41 31
• Climate Change 2023 Sixth Assessment Report of the Intergovernmental Panel on Climate Change 31
• American Economic Review 31
• Manias Panics and Crashes A History of Financial Crises 32
• World Development 32
• Measuring Vulnerability to Natural Hazards Towards Disaster Resilient Societies Stabilizing an Unstable Economy 32
• The Federal Reserve Bank of Chicago 405. 32
• Nature 592 32
• Climate Risk Country Profile Sri Lanka. 32
• Beyond the annual budget Global experience with medium term expenditure frameworks. 32
• World Development Report 2014. Risk and Opportunity. Managing Risk for Development 32
• Sri Lanka Development Update Bridge to Recovery. 32
• Annex A Glossary on Risk Management 33
• Hazards 33
• Exposure 33
• Impacts 33
• Coping capacity 33
• Adaptive Capacity 33
• Vulnerability 33
• Risk 33
• Compound risks 34
• Risk management 34
• Risk trade-offs 34
• Risk transfer 34
• Annex B Choice of governance indicators in panel local projection model 35
• Source Note 35
• Appendix C MFMod further results 37
• Table C1. The macroeconomic effects of a 10 percent climate-induced shock to capital stock 37
• Source MFMod World Bank. Authors calculations. Note Table shows deviations as percent from a baseline scenario. 37
• Table C2. The macroeconomic effects of a 10 percent climate-induced shock to capital stock 38
• Source MFMod World Bank. Authors calculations. Note Table shows deviations as percent from a baseline scenario. 38
• Table C3. The macroeconomic effects of a 10 percent climate-induced shock to capital stock 39
• Source MFMod World Bank. Authors calculations. Note Table shows deviations as percent from a baseline scenario. 39
• Table C4. The macroeconomic effects of a 10 percent climate-induced shock to capital stock 40
• Source MFMod World Bank. Authors calculations. Note Table shows deviations as percent from a baseline scenario. 40
• Table C5. The macroeconomic effects of a 10 percent climate-induced shock to capital stock 41
• Source MFMod World Bank. Authors calculations. Note Table shows deviations as percent from a baseline scenario. 41