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Solar Weather Dynamics and the US Economy: A Comprehensive GVAR Perspective

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Abstract

This work examines the direct impact of solar events on the financial sector of the United States, while also investigating their indirect effects on other sectors of the US economy. The study introduces a cutting-edge methodology based on the Global Vector Autoregressive (GVAR) model, utilizing a comprehensive dataset, to estimate indirect global impulse response functions. By putting forward this approach, the study highlights the significant contribution of solar events on financial and insurance activities, establishing a clear connection to the broader US economy. Moreover, it quantifies and demonstrates the direct and indirect influence of solar events on the US economy, paving the way for future in-depth investigations in this field.

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Authors and Affiliations

  1. University of the Aegean, Mytilene, Greece

    Theodoros Daglis

  2. Agricultural University of Athens, Athens, Greece

    Theodoros Daglis

  3. Technical University of Crete, Chania, Greece

    Theodoros Daglis

  4. National Technical University of Athens, Athens, Greece

    Konstantinos N. Konstantakis & Panayotis G. Michaelides

  5. Hellenic Open University, Patras, Greece

    Konstantinos N. Konstantakis & Panayotis G. Michaelides

  6. Hellenic Air Force, Athens, Greece

    Konstantinos N. Konstantakis

  7. ESSCA École de Management, Paris, France

    Panos Xidonas

  8. National and Kapodistrian University of Athens, Athens, Greece

    Areistidis Samitas

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  1. Theodoros Daglis
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  2. Konstantinos N. Konstantakis
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  3. Panos Xidonas
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  4. Panayotis G. Michaelides
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Correspondence to Panayotis G. Michaelides.

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Appendix

Appendix

Table A (Figures A1.1-A1.11): Stability plots of the VECM models by sector

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Daglis, T., Konstantakis, K.N., Xidonas, P. et al. Solar Weather Dynamics and the US Economy: A Comprehensive GVAR Perspective. Rev Quant Finan Acc (2024). https://doi.org/10.1007/s11156-024-01282-4

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