We investigate the macroeconomic impacts of extreme weather shocks on the United States economy over the past sixty years. To identify changes in extreme weather patterns, we use the Actuaries Climate Index, which tracks changes in extreme temperatures, heavy rainfall, drought, high wind, and...

We analyze the relationship between climate-related disasters and sovereign debt crises using a model with capital accumulation, sovereign default, and disaster risk. We find that disaster risk and default risk together lead to slow post-disaster recovery and heightened borrowing costs....