“Noon Sunshine-Young Scholars Seminar” is a regular academic exchange platform held by School of Finance. It aims to offer valuable occasions of communications among scholars in our college, between teachers and students, the domestic and the oversea. In this semester, we keep our original intention, set off for a new voyage. We will devote ourselves to fostering the academic atmosphere in the college, and promoting the academic level for both teachers and students.

The first session of “Noon Sunshine-Young Scholars Seminar” for the Spring Semester in 2023 is arranged as follows:

Lecture topic

Weather, Credit, and Economic Fluctuations: Evidence from China

Keynote Speaker: Li Li

Commentator: Gong Yazhen

Date

Thursday, March 2nd, 2023

Time

12:00-13:00

Lecture Venue  

Room 116, School of Finance

Abstract

We constructed an Actuary Climate Index to measure extreme weather risks in China. Analyzing macroeconomic data through a structural vector auto-regression model suggests that a negative weather shock leads to persistently low GDP and credit obtained by non-financial firms. In our regression analysis of a panel of firms listed in China, the negative effects of weather shocks on firm level loans were statistically and practically significant. Further analysis suggests that credit risk and expectations are two important impact channels. A high existing credit risk or low confidence among firm managers, amplifies the negative effects of extreme weather on loans.