Federal Reserve Bank of New York

U.S. Banks’ Exposures to Climate Transition Risks

Abstract We propose a new approach to estimate banks’ credit exposures to transition risks that combines sectoral effects of climate policies from general equilibrium (GE) models with historical information on loans’ default risks. At worst, estimated exposures reach 14% of bank...

Not Learning from Others

We study social learning using experiments where two people independently learn relevant information and can share it to make accurate private decisions. Across three experiments, people are substantially less sensitive to information others discover than to equally-relevant info...