Chapter 1: On the Evolution of US Temperature Dynamics
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Published:2022
Francis X. Diebold, Glenn D. Rudebusch, 2022. "On the Evolution of US Temperature Dynamics", Essays in Honor of M. Hashem Pesaran: Prediction and Macro Modeling, Alexander Chudik, Cheng Hsiao, Allan Timmermann
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Abstract
Climate change is a massive multidimensional shift. Temperature shifts, in particular, have important implications for urbanization, agriculture, health, productivity, and poverty, among other things. While much research has documented rising mean temperature levels, the authors also examine range-based measures of daily temperature volatility. Specifically, using data for select US cities over the past half-century, the authors compare the evolving time series dynamics of the average daily temperature (AVG) and the diurnal temperature range (DTR; the difference between the daily maximum and minimum temperatures). The authors characterize trend and seasonality in these two series using linear models with time-varying coefficients. These straightforward yet flexible approximations provide evidence of evolving DTR seasonality and stable AVG seasonality.
