Dietrich, Alexander M.; Müller, Gernot J.; Schoenle, … - 2021
. Respondents perceive a high probability of costly, rare disasters in the near future due to climate change, but not much of an … impact on GDP growth. Salience of rare disasters through media coverage increases the disaster probability by up to 7 … percentage points. We analyze these findings through the lens of a New Keynesian model with rare disasters. First, we illustrate …
