We estimate the return of climate adaptation by modeling the uncertain impact of global warming for extreme weather. Unexpected arrivals elevate extreme-weather risk, which leads households and firms to adapt and thereby lowering the damage of each subsequent arrival. Our approach provides...

This paper seeks to better understand what makes big data analysis different, what we can and cannot do with existing econometric tools, and what issues need to be dealt with in order to work with the data efficiently. As a case study, I set out to extract any business cycle information that...