题目：  Leveraging the Disagreement on Climate Change: Theory and Evidence

主讲人：Russell Wong, Federal Reserve Bank of Richmond

时间： 2022年10月17日，上午8：00 – 9：30 （北京时间）

举办方式： Zoom

主讲人简介：

Russell (Tsz-Nga) Wong is a senior economist in the Research Department. Wong joined the Federal Reserve Bank of Richmond in July 2016 after working as a senior analyst at the Bank of Canada. He earned his doctorate from Washington University in St. Louis in 2012.

 Wong's research interests include monetary and growth theories. His recent policy analysis focuses on payment and settlement, including electronic money, Large Value Payment System, and central counterparty clearing

Abstract:

We present novel insights on how climate change affects financial markets.We model a collateralized mortgage market where agents have different beliefsover a long-run climate risk. In contrast with existing two-period models, ourinfinite-horizon model predicts more pessimistic agents aremorelikely to makeleveraged investment on properties exposed to the climate risk. They also tend touse longer maturity debt contracts (which are more exposed to the long-run risk).Employing large data on property/mortgage transactions and high resolution sea-level-rise maps, we find robust evidence for these findings. We also documenthow monetary and securitization policies affect mortgage climate exposure. Ourresults highlight the importance of heterogeneous beliefs in understanding theeffects of climate change on the financial system.