• Abstract
  • Non-technical summary
  • 1 Introduction
  • 2 Literature overview and motivation
  • 3 Some stylized facts about the incidenceof extreme weather events
  • 4 Factors determining budget balances
  • 5 Econometric methodology and estimation results
  • 5.1 Fixed effects estimation
  • 5.2 Instrumental variable fi xed effectsestimation
  • 5.3 Robustness checks
  • 6 Fiscal policy implications
  • 7 Conclusion
  • References
  • Appendices
  • European Central Bank Working Paper Series