{"title":"The effects of weather shock on income inequality: evidence from Asia-Pacific Economic Cooperation (APEC) member economies","authors":"Woo-Hyung Hong, Wongi Kim","doi":"10.1111/apel.12420","DOIUrl":null,"url":null,"abstract":"<p>This study empirically investigates the dynamic effects of weather shock on within-country income inequality. Using panel data of 17 Asia-Pacific Economic Cooperation (APEC) member economies, we estimate impulse responses via the local projection method. Moreover, temperature and precipitation shocks, defined as deviations of temperature and precipitation from their historical norms, are exploited to measure country-specific weather shocks. The empirical results reveal the following. First, temperature and precipitation shocks deteriorate income inequality measured by the Gini index; these effects are long-lasting. Moreover, asymmetric effects exist: heat waves and droughts more significantly increase income inequality than cold waves and floods. Lastly, current redistribution policies do not seem to effectively mitigate those adverse effects.</p>","PeriodicalId":44776,"journal":{"name":"Asian-Pacific Economic Literature","volume":"38 2","pages":"75-101"},"PeriodicalIF":1.1000,"publicationDate":"2024-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asian-Pacific Economic Literature","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/apel.12420","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This study empirically investigates the dynamic effects of weather shock on within-country income inequality. Using panel data of 17 Asia-Pacific Economic Cooperation (APEC) member economies, we estimate impulse responses via the local projection method. Moreover, temperature and precipitation shocks, defined as deviations of temperature and precipitation from their historical norms, are exploited to measure country-specific weather shocks. The empirical results reveal the following. First, temperature and precipitation shocks deteriorate income inequality measured by the Gini index; these effects are long-lasting. Moreover, asymmetric effects exist: heat waves and droughts more significantly increase income inequality than cold waves and floods. Lastly, current redistribution policies do not seem to effectively mitigate those adverse effects.
期刊介绍：
Asian-Pacific Economic Literature (APEL) is an essential resource for anyone interested in economic development in the Asian-Pacific region. With original articles on topical policy issues, literature surveys, and abstracts of articles from over 300 journals, APEL makes it easy for you to keep ahead of the proliferating research on this dynamic and increasingly important region. Read by politicians, journalists, businesspeople, policy-makers, industrialists and academics, APEL avoids technical jargon, and is the only journal devoted to one-stop, in-depth reporting of research on the development of Asian-Pacific economies.
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