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The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 12 Robustness tests: changing fixed effects specification

From: Physical climate change and the sovereign risk of emerging economies

 

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

 

\(\Delta\)EMBI

\(\Delta\)EMBI

\(\Delta\)EMBI

\(\Delta\)EMBI

\(\Delta\)EMBI

\(\Delta\)EMBI

\(\Delta\)EMBI

\(\Delta\)EMBI

\(\Delta\)EMBI

HistoricalTempAnomaly

 

0.0125 (0.0795)

− 0.222** (0.0830)

 

0.0599 (0.112)

− 0.194** (0.0952)

 

0.0913 (0.113)

− 0.241*** (0.0852)

DeviationAdjustedTempAnomaly

− 0.237*** (0.0743)

  

− 0.179* (0.106)

  

− 0.238*** (0.0880)

  

VeryColdCountry \(\times\) HistoricalTempAnomaly

 

− 0.0482 (0.0918)

  

− 0.0355 (0.104)

  

− 0.0470 (0.110)

 

ColdCountry (base category) \(\times\) HistoricalTempAnomaly

 

0 (0)

  

0 (0)

  

0 (0)

 

MildCountry \(\times\) HistoricalTempAnomaly

 

− 0.120 (0.0994)

  

− 0.176 (0.118)

  

− 0.234* (0.117)

 

WarmCountry \(\times\) HistoricalTempAnomaly

 

− 0.0984 (0.118)

  

− 0.114 (0.146)

  

− 0.196 (0.156)

 

VeryWarmCountry \(\times\) HistoricalTempAnomaly

 

− 0.428** (0.165)

  

− 0.380** (0.185)

  

− 0.562** (0.249)

 

RuleOfLaw

  

− 0.0036 (0.00499)

     

− 0.0056 (0.00500)

HistoricalTempAnomaly \(\times\) RuleOfLaw

  

0.00346**

(0.00148)

  

0.00358*** (0.00126)

  

0.00457*** (0.00117)

Precipitation

− 0.0832 (0.440)

− 0.104 (0.443)

0.286 (0.411)

0.0590 (0.408)

0.0555 (0.404)

0.234 (0.380)

0.481 (0.672)

0.428 (0.690)

0.776 (0.668)

Observations

10,006

10,006

9699

9951

9951

9682

9957

9957

9688

R-squared

0.418

0.418

0.395

0.571

0.572

0.552

0.532

0.532

0.510

Country FE

Yes

Yes

Yes

No

No

No

No

No

No

MonthYear FE

Yes

Yes

Yes

No

No

No

No

No

No

Region\(\times\)MonthYear FE

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Country\(\times\)Year FE

No

No

No

Yes

Yes

Yes

No

No

No

Country\(\times\)Quarter FE

No

No

No

No

No

No

Yes

Yes

Yes

Total “very warm” country effect

 

− 0.415

  

− 0.320

  

− 0.471

 
  1. This table shows robustness checks for the deviation-adjusted temperature variable (Table 6, column (6)), the bin-regression analyzing the warmness of countries using 5 \(^{\circ }\)C intervals (Table 7, column (2)) and the interaction with institutional characteristics (rule of law index, Table 9, column (1)). The total “very warm” country effect is derived by adding the coefficients of the “very warm” interaction effect and the single term of HistoricalTempAnomaly. I change fixed effects as described in the table. Standard errors (in parentheses) are clustered at the country level and control for heteroscedasticity and serial correlation, ***, ** and * indicate statistical significance at the 1%, 5% and 10% level, respectively. See Table 18 for variable definitions and sources