Increasing Weather Risk: Fact or Fiction?
17 Pages Posted: 8 Jan 2017
Date Written: November 10, 2012
It is an undisputed fact that weather risk increases over time due to climate change. However, qualification of this statement with regard to the type of weather risk and geographical location is needed. We investigate the application of novel statistical tools for assessing changes in weather risk over time. We apply local t-test, change point tests and Mann-Kendall test as well as quantile regression to weather risk indicators that are relevant from the viewpoint of agricultural production. Our results show that weather risk follows different pattern depending on the type of risk and the location.
Keywords: weather extremes, agricultural risk, change point test, quantile regressions
JEL Classification: C00, C14, J01, J31
Suggested Citation: Suggested Citation