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Smooth transitions across latitudes and longitudes: An application of a nonlinear panel regression to the climate—economics nexus

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  • Ubilava, David
  • Villoria, Nelson B.
  • Tack, Jesse B.

Abstract

We propose the smooth transitions across latitudes and longitudes framework, a special case of the panel smooth transition regression, which allows the heterogeneity of coefficients based on countries’ geographic location. Using this framework we examine the effect of El Niño Southern Oscillation on economic growth. We find a wide range of effects spanning -4% to 3% per capita GDP growth rates across 137 countries. This finding can be of value to researchers in the fields of economic growth and climate econometrics.

Suggested Citation

  • Ubilava, David & Villoria, Nelson B. & Tack, Jesse B., 2019. "Smooth transitions across latitudes and longitudes: An application of a nonlinear panel regression to the climate—economics nexus," Economics Letters, Elsevier, vol. 182(C), pages 114-117.
    • Handle: RePEc:eee:ecolet:v:182:y:2019:i:c:p:114-117
    DOI: 10.1016/j.econlet.2019.06.011
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    References listed on IDEAS

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    1. González, Andrés & Teräsvirta, Timo & van Dijk, Dick & Yang, Yukai, 2005. "Panel Smooth Transition Regression Models," SSE/EFI Working Paper Series in Economics and Finance 604, Stockholm School of Economics, revised 11 Oct 2017.
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    More about this item

    Keywords

    Climate econometrics; Economic growth; Geographical heterogeneity; El Niño southern oscillation; Panel smooth transition regression;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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