The macroeconomic cost of temperature risk
Description
Replication files for The macroeconomic cost of temperature risk by Piergiorgio Alessandri and Haroon Mumtaz
Files
Steps to reproduce
This guide explains how to reproduce results using the provided Matlab code and data. The process involves running MCMC estimations and scripts to generate figures, impulse response functions (IRFs), and tables. Detailed instructions are in readme.doc included in the zipped folder. ________________________________________ 1. Figures 1, 3, & 4 • Step i: Run figures3-5\estimate2_fe.m to estimate the panel VAR with svol. To skip the MCMC, rename results_ORIGINAL.mat to results.mat in the \Figures3-5 folder. • Step ii: Run figures3-5\get_irf.m for IRFs. • Step iii: Run figures3-5\get_vol.m for stochastic volatility. • Step iv: Run JIE_figures_1_to_4.m to create figures 1, 3, and 4. Figure 2 is omitted due to proprietary data. ________________________________________ 2. Figure 5 • Step i: Complete steps i-iii for Figures 1, 3, & 4. • Step ii: Run JIE_figure5.m. ________________________________________ 3. Figures 6 & 7 • Step i: Estimate several alternative models by running estimate_fe_1.m or estimate2_fe.m within their respective subdirectories (e.g., extended_model_1_CRUTS, GDP2, Hot1, Poor, Rich, Subsample, Temp2, etc.). Then, compute IRFs by running the appropriate get_irf.m script. • Step ii: Run JIE_figures_6_to7.m. • Step iii: Run JIE_tables_1_2.m to produce Tables 1 and 2. ________________________________________ 4. Figure 8 • Step i: Run figures3-5\estimate2_fe for the baseline CRU-TS dataset. • Step ii: Run \Figure9\benchmark_2var_new\estimate2_fe for the DJO dataset. • Step iii: Run JIE_figure_8.m. ________________________________________ 5. Figure 9 • Step i: Estimate various models using DJO data (e.g., Benchmark_2var_new, Agriculture_gdp, Consumption_gdp, etc.) by running estimate2_fe.m followed by get_irf.m in each respective folder. • Step ii: Run JIE_figure9.m.