This repository contains the R code for the main simulation results in: Dafermos Y. and Nikolaidi, M. (2021). ‘How can green differentiated capital requirements affect climate risks? A dynamic macrofinancial analysis’, Journal of Financial Stability, 54, 100871.
To run this code: (1) install R and R Studio; (2) click on the ‘Code’ button and download and extract the ZIP folder; (3) open the R file and run the code by clicking on the ‘Source’ button.
The code generates the Figures 1, 2, 3, B.1, D.1, D.2 and D.3 as well as Tables 1 and 3 in the paper. Note that you will need to install the R package ‘Cairo’ before running the code. To do so use the command: install.packages("Cairo").
For more information about the DEFINE model, see here. For any questions or comments, please write to: [email protected] or [email protected].