From flood to fire: is physical climate risk taken into account in banks’ residential mortgage rates?

Physical climate risks can have a large regional impact, which can influence mortgage loans’ credit risk and should be priced by the lenders. Motivated by the relevance of climate change for financial intermediaries, our paper aims at analysing if physical climate risks are being reflected in residential real estate loan rates of banks. We show that on average banks seem to demand a physical climate risk premium from mortgage borrowers and the premium has increased over recent years. However, there is significant heterogeneity in bank practices.

Consumer attitudes towards a central bank digital currency

We field a series of experiments in a population-representative survey of European consumers to examine their attitudes towards the possible introduction of a digital euro. First, we show that a short video explaining the key features of the digital euro is effective in changing consumers’ beliefs about such a new form of payment and increases the likelihood of adoption by 12pp relative to a control group that is not shown the video.

FEDS Paper: Challenging Demographic Representativeness at State Borders: Implications for Policy Research

Benjamin S. Kay and Albina KhatiwodaThis study examines the demographic characteristics of U.S. state border counties, comparing them with those of nonborder counties. The demographic representativeness of border counties is essential for the interpretation of the results in state border-county difference-in-difference analyses, used in state policy evaluations. Our findings reveal that border counties generally have higher proportions of White, older, and disabled populations.

“A Generational Loss of Talent” - Scientist Warns Funding Cuts in Science, Tech, and Health Undermine U.S. Leadership

Phillip Alvelda, a scientist and entrepreneur with past roles at NASA and DARPA, sounds the alarm on cuts that threaten the innovative capacities that have made America a global powerhouse.
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