ArticleJournal of banking & finance2023
Compounding COVID-19 and climate risks: The interplay of banks' lending and government's policy in the shock recovery.
Article in Journal of banking & finance, 2023. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 5 papers.
What it found
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The abstract states no effect estimate the extractor could read, or names no intervention and outcome on the map, so this paper lights no cell and moves no belief. It is still indexed, cited and linked below.
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Who cites it
5 citing papers in PubMed, 68 citations in OpenAlex.
- New York State Climate Impacts Assessment Chapter 08: Society and Economy.Annals of the New York Academy of Sciences · 2024Article
- Asset-level assessment of climate physical risk matters for adaptation finance.Nature communications · 2024Article
- Temperature difference and systemic risk: Evidence from LASSO-VAR-DY based on China's pan-financial market.PloS one · 2024Article
- Lessons from COVID-19 for managing transboundary climate risks and building resilience.Climate risk management · 2022Article
- Managing the financial risks of climate change and pandemics: What we know (and don't know).One earth (Cambridge, Mass.) · 2021Review
Corrections and comments
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Authors and funding
5 authors at 5 institutions in 3 countries.
Funding
No grant is acknowledged in the PubMed record.
Abstract
We assess the individual and compounding impacts of COVID-19 and climate physical risks in the economy and finance, using the EIRIN Stock-Flow Consistent model. We study the interplay between banks' lending decisions and government's policy effectiveness in the economic recovery process. We calibrate EIRIN on Mexico, being a country highly exposed to COVID-19 and hurricanes risks. By embedding financial actors and the credit market, and by endogenising investors' expectations, EIRIN analyses the finance-economy feedbacks, providing an accurate assessment of risks and policy co-benefits. We quantify the impacts of compounding COVID-19 and hurricanes on GDP through time using a compound risk indicator. We find that procyclical lending and credit market constraints amplify the initial shocks by limiting firms' recovery investments, thus mining the effectiveness of higher government spending. When COVID-19 and hurricanes compound, non-linear dynamics that amplify losses emerge, negatively affecting the economic recovery, banks' financial stability and public debt sustainability.
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Registered trials
Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.