What Are the Short- to Medium-Term Effects of Extreme Weather on the Croatian Economy?

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Croatian Economic Survey, Vol. 25 No. 1, 2023.

Original scientific paper

https://doi.org/10.15179/ces.25.1.2

What Are the Short- to Medium-Term Effects of Extreme Weather on the Croatian Economy?

Tihana Škrinjarić orcid.org/0000-0002-9310-6853 ; Bank of England, London, United Kingdom

Full text: english pdf 758 Kb

page 33-78

downloads: 236

APA 6th Edition

Škrinjarić, T. (2023). What Are the Short- to Medium-Term Effects of Extreme Weather on the Croatian Economy?. Croatian Economic Survey, 25 (1), 33-78. https://doi.org/10.15179/ces.25.1.2

MLA 8th Edition

Škrinjarić, Tihana. "What Are the Short- to Medium-Term Effects of Extreme Weather on the Croatian Economy?." Croatian Economic Survey, vol. 25, no. 1, 2023, pp. 33-78. https://doi.org/10.15179/ces.25.1.2. Accessed 17 May 2024.

Chicago 17th Edition

Škrinjarić, Tihana. "What Are the Short- to Medium-Term Effects of Extreme Weather on the Croatian Economy?." Croatian Economic Survey 25, no. 1 (2023): 33-78. https://doi.org/10.15179/ces.25.1.2

Harvard

Škrinjarić, T. (2023). 'What Are the Short- to Medium-Term Effects of Extreme Weather on the Croatian Economy?', Croatian Economic Survey, 25(1), pp. 33-78. https://doi.org/10.15179/ces.25.1.2

Vancouver

Škrinjarić T. What Are the Short- to Medium-Term Effects of Extreme Weather on the Croatian Economy?. Croatian Economic Survey [Internet]. 2023 [cited 2024 May 17];25(1):33-78. https://doi.org/10.15179/ces.25.1.2

IEEE

T. Škrinjarić, "What Are the Short- to Medium-Term Effects of Extreme Weather on the Croatian Economy?", Croatian Economic Survey, vol.25, no. 1, pp. 33-78, 2023. [Online]. https://doi.org/10.15179/ces.25.1.2

Abstract

This research examines the short- to medium-term effects of weather changes on the Croatian economy by observing a simple model of an economy that includes changes in extreme weather events. Monthly data from 1999 to 2022 on the growth of the index of industrial production, inflation, energy inflation, changes in the unemployment rate, and selected weather variables are utilized to estimate several vector autoregression (VAR) models. The main finding indicates that inflation is mainly affected by weather shocks, especially drought. This means that monetary policy needs to consider this, mainly due to weather extremes being more frequent and of greater magnitudes. Furthermore, the insurance industry could also benefit from such findings due to the first quantification of such results on Croatian data.

Keywords

climate change; weather effects; extreme weather; inflation

Hrčak ID:

304659

URI

https://hrcak.srce.hr/304659

Publication date:

26.6.2023.

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