1 Introduction
2 Theoretical considerations
3 Data
4 Empirical analysis
4.1 Initial model with month-specific weather effects
Dependent variable | |||
---|---|---|---|
Total | Food | Nonfood | |
(1) | (2) | (3) | |
Constant | 0.033 (0.097) | 0.035 (0.110) | \(-\) 0.010 (0.123) |
\(\Delta c_{t-1}\) | \(-\,0.688^{***}\) (0.077) | ||
\(\Delta c_{t-2}\) | \(-\,0.470^{***}\) (0.084) | ||
\(\Delta c_{t-3}\) | \(-\,0.164^{**}\) (0.071) | ||
\(\Delta c_{t-1}\) | \(-\,0.566^{***}\) (0.089) | ||
\(\Delta c_{t-2}\) | \(-\,0.320^{***}\) (0.098) | ||
\(\Delta c_{t-3}\) | \(-\) 0.137 (0.090) | ||
\(\Delta c_{t-1}\) | \(-\,0.626^{***}\) (0.076) | ||
\(\Delta c_{t-2}\) | \(-\,0.457^{***}\) (0.078) | ||
\(\Delta c_{t-3}\) | \(-\,0.174^{**}\) (0.068) | ||
\(R_{t}\) | \(0.509^{***}\) (0.115) | \(0.430^{***}\) (0.127) | \(0.534^{***}\) (0.144) |
\({\mathrm{DI}}^{{\mathrm{Jan}}}{\mathrm{Temp}}_{t}\) | 0.074 (0.187) | 0.023 (0.216) | 0.203 (0.236) |
\({\mathrm{DI}}^{{\mathrm{Feb}}}{\mathrm{Temp}}_{t}\) | 0.028 (0.140) | \(-\) 0.123 (0.158) | 0.211 (0.177) |
\({\mathrm{DI}}^{{\mathrm{Mar}}}{\mathrm{Temp}}_{t}\) | \(0.503^{**}\) (0.199) | 0.227 (0.226) | 0.\(672^{***}\) (0.254) |
\({\mathrm{DI}}^{\mathrm{Apr}}{\mathrm{Temp}}_{t}\) | 0.213 (0.139) | 0.129 (0.157) | 0.141 (0.177) |
\({\mathrm{DI}}^{\mathrm{May}}{\mathrm{Temp}}_{t}\) | 0.068 (0.209) | 0.055 (0.236) | 0.052 (0.267) |
\({\mathrm{DI}}^{\mathrm{Jun}}{\mathrm{Temp}}_{t}\) | \(-\,0.315^{**}\) (0.145) | \(-\) 0.020 (0.163) | \(-0.341^{*}\) (0.184) |
\({\mathrm{DI}}^\mathrm{{Jul}}{\mathrm{Temp}}_{t}\) | 0.197 (0.176) | \(0.454^{**}\) (0.199) | 0.028 (0.222) |
\({\mathrm{DI}}^{\mathrm{Aug}}{\mathrm{Temp}}_{t}\) | \(-\,0.615^{***}\) (0.156) | 0.126 (0.175) | \(-\,1.029^{***}\) (0.199) |
\({\mathrm{DI}}^{\mathrm{Sep}}{\mathrm{Temp}}_{t}\) | \(-\,0.327^{*}\) (0.182) | \(-\) 0.112 (0.206) | \(-\,0.543^{**}\) (0.231) |
\({\mathrm{DI}}^{\mathrm{Oct}}{\mathrm{Temp}}_{t}\) | \(-\,0.697^{***}\) (0.214) | \(-\) 0.337 (0.235) | \(-0.884^{***}\) (0.276) |
\({\mathrm{DI}}^{\mathrm{Nov}}{\mathrm{Temp}}_{t}\) | \(-\,0.241\) (0.162) | \(-\) 0.242 (0.182) | \(-\) 0.299 (0.205) |
\({\mathrm{DI}}^{{\mathrm{Dec}}}{\mathrm{Temp}}_{t}\) | 0.195 (0.210) | \(-\) 0.132 (0.237) | 0.295 (0.265) |
\({\mathrm{DI}}^{{\mathrm{Jan}}}{\mathrm{Temp}}_{t-1}\) | 0.114 (0.202) | \(0.397^{*}\) (0.225) | \(-\) 0.141 (0.258) |
\({\mathrm{DI}}^{{\mathrm{Feb}}}{\mathrm{Temp}}_{t-1}\) | \(-\) 0.152 (0.192) | 0.216 (0.220) | \(-\,0.431^{*}\) (0.244) |
\({\mathrm{DI}}^{{\mathrm{Mar}}}{\mathrm{Temp}}_{t-1}\) | \(-\) 0.160 (0.119) | \(-\) 0.022 (0.134) | \(-\) 0.221 (0.151) |
\({\mathrm{DI}}^{\mathrm{Apr}}{\mathrm{Temp}}_{t-1}\) | \(-\) 0.093 (0.206) | \(-\) 0.028 (0.230) | \(-\) 0.159 (0.263) |
\({\mathrm{DI}}^{\mathrm{May}}{\mathrm{Temp}}_{t-1}\) | \(-\,0.374^{**}\) (0.153) | \(-\) 0.213 (0.172) | \(-\,0.414^{**}\) (0.194) |
\({\mathrm{DI}}^{\mathrm{Jun}}{\mathrm{Temp}}_{t-1}\) | 0.187 (0.207) | 0.076 (0.233) | 0.259 (0.264) |
\({\mathrm{DI}}^\mathrm{{Jul}}{\mathrm{Temp}}_{t-1}\) | \(-\) 0.049 (0.146) | \(-\) 0.118 (0.160) | 0.111 (0.184) |
\({\mathrm{DI}}^{\mathrm{Aug}}{\mathrm{Temp}}_{t-1}\) | \(0.271^{*}\) (0.157) | 0.026 (0.180) | \(0.401^{**}\) (0.200) |
\({\mathrm{DI}}^{\mathrm{Sep}}{\mathrm{Temp}}_{t-1}\) | \(0.461^{***}\) (0.163) | 0.283 (0.175) | \(0.567^{***}\) (0.213) |
\({\mathrm{DI}}^{\mathrm{Oct}}{\mathrm{Temp}}_{t-1}\) | \(0.416^{**}\) (0.198) | 0.093 (0.221) | \(0.664^{***}\) (0.253) |
\({\mathrm{DI}}^{\mathrm{Nov}}{\mathrm{Temp}}_{t-1}\) | 0.157 (0.202) | 0.251 (0.219) | 0.173 (0.260) |
\({\mathrm{DI}}^{{\mathrm{Dec}}}{\mathrm{Temp}}_{t-1}\) | \(0.399^{**}\) (0.196) | 0.252 (0.220) | \(0.485^{*}\) (0.246) |
BP-test (p value) | 0.61 | 0.72 | 0.68 |
LH test (p value) | 0.00 | 0.46 | 0.00 |
Observations | 176 | 176 | 176 |
\({R}^{2}\) | 0.608 | 0.330 | 0.633 |
Adjusted \({R}^{2}\) | 0.534 | 0.202 | 0.564 |
4.2 Restricted model with month-specific weather effects
Dependent variable | |||
---|---|---|---|
Total | Food | Non-food | |
(1) | (2) | (3) | |
Constant | 0.035 (0.080) | 0.079 (0.089) | \(-\) 0.024 (0.102) |
\(\Delta c_{t-1}\) | \(-\,0.602^{***}\) (0.069) | ||
\(\Delta c_{t-2}\) | \(-\,0.404^{***}\) (0.078) | ||
\(\Delta c_{t-3}\) | \(-\,0.123^{*}\) (0.068) | ||
\(\Delta c_{t-1}\) | \(-\,0.503^{***}\) (0.082) | ||
\(\Delta c_{t-2}\) | \(-\,0.263^{***}\) (0.090) | ||
\(\Delta c_{t-3}\) | \(-\) 0.095 (0.084) | ||
\(\Delta c_{t-1}\) | \(-\,0.567^{***}\) (0.068) | ||
\(\Delta c_{t-2}\) | \(-\,0.434^{***}\) (0.074) | ||
\(\Delta c_{t-3}\) | \(-\,0.161^{**}\) (0.066) | ||
\(R_{t}\) | \(0.390^{***}\) (0.104) | \(0.330^{***}\) (0.113) | \(0.454^{***}\) (0.131) |
\({\mathrm{DTI}}^{{\mathrm{Jan}}}{\mathrm{Temp}}_{t}\) | 0.181 (0.124) | \(-\) 0.027 (0.143) | \(0.346^{**}\) (0.156) |
\({\mathrm{DTI}}^{{\mathrm{Feb}}}{\mathrm{Temp}}_{t}\) | 0.105 (0.088) | \(-\) 0.018 (0.098) | \(0.211^{*}\) (0.111) |
\({\mathrm{DTI}}^{{\mathrm{Mar}}}{\mathrm{Temp}}_{t}\) | \(0.353^{**}\) (0.143) | 0.152 (0.158) | \(0.476^{***}\) (0.182) |
\({\mathrm{DTI}}^{\mathrm{Apr}}{\mathrm{Temp}}_{t}\) | \(0.301^{***}\) (0.097) | 0.170 (0.106) | \(0.272^{**}\) (0.122) |
\({\mathrm{DTI}}^{\mathrm{May}}{\mathrm{Temp}}_{t}\) | \(-\) 0.045 (0.137) | \(-\) 0.022 (0.152) | \(-\) 0.122 (0.174) |
\({\mathrm{DTI}}^{\mathrm{Jun}}{\mathrm{Temp}}_{t}\) | \(-\,0.167^{*}\) (0.094) | 0.014 (0.103) | \(-\,0.252^{**}\) (0.119) |
\({\mathrm{DTI}}^\mathrm{{Jul}}{\mathrm{Temp}}_{t}\) | \(-\) 0.094 (0.113) | 0.180 (0.125) | \(-\) 0.218 (0.143) |
\({\mathrm{DTI}}^{\mathrm{Aug}}{\mathrm{Temp}}_{t}\) | \(-\,0.563^{***}\) (0.114) | \(-\) 0.068 (0.121) | \(-\,0.833^{***}\) (0.147) |
\({\mathrm{DTI}}^{\mathrm{Sep}}{\mathrm{Temp}}_{t}\) | \(-\,0.337^{**}\) (0.131) | \(-\) 0.101 (0.144) | \(-\,0.549^{***}\) (0.166) |
\({\mathrm{DTI}}^{\mathrm{Oct}}{\mathrm{Temp}}_{t}\) | \(-\,0.423^{***}\) (0.143) | \(-\,0.296^{*}\) (0.151) | \(-\,0.503^{***}\) (0.186) |
\({\mathrm{DTI}}^{\mathrm{Nov}}{\mathrm{Temp}}_{t}\) | \(-\,0.375^{***}\) (0.116) | \(-\,0.301^{**}\) (0.129) | \(-\,0.419^{***}\) (0.145) |
\({\mathrm{DTI}}^{{\mathrm{Dec}}}{\mathrm{Temp}}_{t}\) | 0.093 (0.131) | \(-\,0.292^{**}\) (0.145) | \(0.293^{*}\) (0.167) |
LR-test (p value) | 0.229 | 0.693 | 0.304 |
BP-test (p value) | 0.58 | 0.82 | 0.57 |
LH-test (p value) | 0.00 | 0.17 | 0.00 |
Observations | 176 | 176 | 176 |
\({R}^{2}\) | 0.573 | 0.294 | 0.603 |
Adjusted \(R^{2}\) | 0.530 | 0.223 | 0.563 |
Total | Food | Non-food | |
---|---|---|---|
Temperature | 0.16 | 0.02 | 0.17 |
Precipitation | 0.03 | \(-\) 0.00 | 0.02 |
Sunshine | 0.06 | 0.07 | \(-\) 0.19 |
4.3 Gauging the significance of weather effects
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mean | \(-\) 0.26 | \(-\) 0.04 | 0.40 | \(-\) 0.05 | \(-\) 0.32 | 0.05 | 0.18 | 0.01 | 0.45 | \(-\) 0.27 | \(-\) 0.18 | 0.54 |
Mean (absolute) | 1.34 | 0.99 | 0.85 | 0.86 | 1.41 | 1.28 | 0.80 | 1.25 | 1.35 | 0.93 | 1.07 | 1.36 |