Climate Change Economics in Vietnam: Redefining Economic Impact
Christian Otto, Christoph Schult, Thomas Vogt
IWH Discussion Papers,
No. 15,
2025
Abstract
Vietnam, a lower-middle-income economy, faces severe climate risks from heat waves, sea-level rise, and tropical cyclones, which are expected to intensify under ongoing global warming. Using a dynamic general equilibrium model, we analyze economic transition dynamics from 2015 to 2100, incorporating heat-induced labor productivity losses, agricultural land loss, and cyclone-related property damage. We compare a Paris-compatible scenario limiting warming to below 2 °C with a high-emission scenario reaching 4–5 °C. While output and investment impacts remain highly uncertain and statistically indistinguishable across scenarios until 2100, consumption losses are significantly larger under high emissions, mainly driven by heat-related productivity declines, with cyclones contributing most to uncertainty. These findings underscore the importance of considering multiple impact channels beyond output damages in climate-development research.
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Aggregate Dynamics with Sectoral Price Stickiness Heterogeneity and Aggregate Real Shocks
Alessandro Flamini, Iftekhar Hasan
Journal of Money, Credit and Banking,
Vol. 57 (5),
2025
Abstract
This paper investigates the relationship between heterogeneity in sectoral price stickiness and the response of the economy to aggregate real shocks. We show that sectoral heterogeneity reduces inflation persistence for a constant average duration of price spells, and that inflation persistence can fall despite duration increases associated with increases in heterogeneity. We also find that sectoral heterogeneity reduces the persistence and volatility of interest rate and output gap for a constant price spells duration, while the qualitative impact on inflation volatility tends to be positive. A relevant policy implication is that neglecting price stickiness heterogeneity can impair the economic dynamics assessment.
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Governance & Structure
Governance & Structure The IWH Center for Business and Productivity Dynamism (IWH-CBPD), led by Center Chief Javier Miranda , hosts the CompNet Network and its related activities.…
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Media Response
Media Response February 2026 Oliver Holtemöller: Talsohle scheint erreicht in: Wirtschaftswoche, 13.02.2026 IWH: »Rosenkrieg« ums Arbeitszeugnis (Bericht mit Bezug auf…
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Centre for Business and Productivity Dynamics
Centre for Business and Productivity Dynamics (IWH-CBPD) The Centre for Business and Productivity Dynamics (CBPD) was founded in January 2025 and works with policy and research…
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FINPRO 5 Conference - Tokyo
Upcoming Event: FINPRO5 – Finance and Productivity Conference 24-25 April 2026, University of Tokyo The 5th Finance and Productivity Conference (FINPRO5) , co-organised by the…
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Halle Institute for Economic Research
Labour Markets: Sharpened Focus With the new name, the Department places its research focus on labour economics at the centre. Core topics remain structural change, wages,…
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Banks and the State-Dependent Effects of Monetary Policy
Martin S. Eichenbaum, Federico Puglisi, Sergio Rebelo, Mathias Trabandt
NBER Working Papers,
No. 33523,
2025
Abstract
We show that the response of banks’ net interest margin (NIM) to monetary policy shocks is state dependent. Following a period of low (high) Federal Funds rates, a contractionary monetary policy shock leads to an increase (decrease) in NIM. Aggregate economic activity exhibits a similar state-dependent pattern. To explain these dynamics, we develop a banking model in which social interactions influence households’ attentiveness to deposit interest rates. We embed that framework within a nonlinear heterogeneous-agent NK model. The estimated model accounts well quantitatively for our key empirical findings.
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Research Data Centre
Research Data Centre (IWH-RDC) Direct link to our Data Offer The IWH Research Data Centre offers external researchers access to microdata and micro-aggregated data sets that…
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Research Clusters
Three Research Clusters Each IWH research group is assigned to a topic-oriented research cluster. The clusters are not separate organisational units, but rather bundle the…
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