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On the Evolution of US Temperature Dynamics

In: Essays in Honor of M. Hashem Pesaran: Prediction and Macro Modeling

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  • Francis X. Diebold
  • Glenn D. Rudebusch

Abstract

Climate change is a massive multidimensional shift. Temperature shifts, in particular, have important implications for urbanization, agriculture, health, productivity, and poverty, among other things. While much research has documented rising mean temperaturelevels, the authors also examine range-based measures of daily temperaturevolatility. Specifically, using data for select US cities over the past half-century, the authors compare the evolving time series dynamics of the average daily temperature (AVG) and the diurnal temperature range (DTR; the difference between the daily maximum and minimum temperatures). The authors characterize trend and seasonality in these two series using linear models with time-varying coefficients. These straightforward yet flexible approximations provide evidence of evolving DTR seasonality and stable AVG seasonality.

Suggested Citation

  • Francis X. Diebold & Glenn D. Rudebusch, 2022. "On the Evolution of US Temperature Dynamics," Advances in Econometrics, in: Essays in Honor of M. Hashem Pesaran: Prediction and Macro Modeling, volume 43, pages 9-28, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:aecozz:s0731-90532021000043a002
    DOI: 10.1108/S0731-90532021000043A002
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    References listed on IDEAS

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    1. David Wigglesworth, 2019. "Crop Production and Climate Change: The Importance of Temperature Variability," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(4), pages 529-531, December.
    2. Sean D. Campbell & Francis X. Diebold, 2005. "Weather Forecasting for Weather Derivatives," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 6-16, March.
    3. Sassan Alizadeh & Michael W. Brandt & Francis X. Diebold, 2002. "Range‐Based Estimation of Stochastic Volatility Models," Journal of Finance, American Finance Association, vol. 57(3), pages 1047-1091, June.
    4. Andrews, Donald W K & Monahan, J Christopher, 1992. "An Improved Heteroskedasticity and Autocorrelation Consistent Covariance Matrix Estimator," Econometrica, Econometric Society, vol. 60(4), pages 953-966, July.
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    Cited by:

    1. María Dolores Gadea Rivas & Jesús Gonzalo, 2022. "A tale of three cities: climate heterogeneity," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 13(1), pages 475-511, May.
    2. Gadea Rivas, María Dolores, 2021. "A tale of three cities: climate heterogeneity (special issue of SERIES in homage to Juan J. Dolado)," UC3M Working papers. Economics 32200, Universidad Carlos III de Madrid. Departamento de Economía.

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    More about this item

    Keywords

    Diurnal temperature range; temperature volatility; temperature variability; climate modeling; climate change; temperature seasonality; Q54; C22;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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