Environmental Economics and Sustainability 2017
DOI: 10.1002/9781119328223.ch2
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Detecting Volcanic Eruptions in Temperature Reconstructions by Designed Break‐Indicator Saturation

Abstract: We present a methodology for detecting structural breaks at any point in timeseries regression models using an indicator saturation approach. Building on recent developments in econometric model selection for more variables than observations, we saturate a regression model with a full set of designed break functions. By selecting over these break functions using an extended general-to-specific algorithm, we obtain unbiased estimates of the break date and magnitude. Monte Carlo simulations confirm the approxima… Show more

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Cited by 13 publications
(13 citation statements)
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References 52 publications
(67 reference statements)
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“…However, if more indicators are retained than expected, this can be informative about the underlying unmodelled characteristics of the data (see [ 45 ] for a formal discussion of IIS misspecification testing). IIS has been applied to various settings, including the identification of unknown volcanic eruptions in historic temperature records [ 46 , 47 ], to evaluate climate models [ 48 ], assess economic forecasts [ 49 ] and test the robustness of panel models of unemployment [ 50 ]. For the present analysis, IIS is implemented using the R-package ‘gets' [ 20 ].…”
Section: Methodsmentioning
confidence: 99%
“…However, if more indicators are retained than expected, this can be informative about the underlying unmodelled characteristics of the data (see [ 45 ] for a formal discussion of IIS misspecification testing). IIS has been applied to various settings, including the identification of unknown volcanic eruptions in historic temperature records [ 46 , 47 ], to evaluate climate models [ 48 ], assess economic forecasts [ 49 ] and test the robustness of panel models of unemployment [ 50 ]. For the present analysis, IIS is implemented using the R-package ‘gets' [ 20 ].…”
Section: Methodsmentioning
confidence: 99%
“…The latter quantity is subject to strong biological persistence that is thought to impose higher temporal autocorrelation in derived chronologies, while density records display lower autocorrelation (see Wilson et al for a cogent review of these issues). The consequence for estimates of climatic cooling subsequent to volcanic eruptions are that density records indicate enhanced cooling spikes in the year directly following the eruption and a quicker return to mean climate, relative to width records that tend to smooth the signal and yield smaller deviations that persist longer . This awareness is spurring new attempts to better characterize climatic responses to volcanic eruptions, but it remains uncertain how the relative contributions of ring width and density may influence the decadal and centennial variability of large‐scale reconstructions.…”
Section: Back To the Futurementioning
confidence: 99%
“…If the breaks under investigation have a relatively regular shape, saturation techniques can be 'designed' appropriately, denoted DIS. This idea has been used by Pretis et al (2016) to detect the impacts of volcanic eruptions on temperature records. When a volcano erupts, it spews material into the atmosphere and above, which can 'block' sunlight, or more accurately, reduce received solar radiation.…”
Section: Designed-break Indicator Saturationmentioning
confidence: 99%