A New Look at the Effects of Weather Shocks Over Time

Abstract: This article examines the relationship between severe weather shocks and the U.S. macroeconomy from 1963 to 2019, applying a novel empirical approach to high-frequency data. We find weather shocks are growing in their influence on key economic variables, such as industrial output, unemployment and inflation.

Keywords: environment; weather shocks; high frequency events; industrial outputs; employment; Inflation;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2023-08

Volume: 23

Issue: 25