Title: The heterogeneous regional employment effects of climate change policies
Abstract: This paper examines the effects of Climate Change Policies (CCPs) on employment in 349 regions across 26 countries from 1990 to 2020. We find that more stringent CCPs have short-term negative effects on regional employment, which disappear in the medium term. The impact varies depending on the type of policy implemented, with market-based instruments having a greater and more persistent effect. Regions in countries with stronger active labor market policies experience less short-term negative effects, while lower employment protection leads to reallocation and job creation in the medium term, without entailing larger short-term costs. Regions with higher levels of emissions, GDP, population density, industrial activities and with lower levels of human capital tend to experience larger and/or more persistent employment reductions.
Title: The Effects of Uncertainty on the Current Account
Abstract: We use the World Uncertainty Index (WUI) to estimate the dynamic effects of uncertainty on the current account balance for a large sample of 143 developed and developing countries, during the period 1973-2021. Our analysis shows that higher uncertainty is associated with an increase in the current account balance which reflects both increased saving and reduced investment. These effects are sizable and statistically significant, peaking one year after the uncertainty shock, and gradually dying out in the long run. The effect varies across countries, being larger in countries characterized by lower social expenditure, less developed financial markets, and during periods of high financial stress.