Global temperatures and greenhouse gases: a common features approach

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Abstract

We propose a common features approach for testing for common trends and estimating long-run relationships between variables with complex trends. Using this approach, we establish that global temperatures and the concentration of greenhouse gases share a common trend and we estimate their long-run relationship without conditioning on the exact nature of this trend.

Original languageEnglish
Number of pages15
JournalJournal of Econometrics
DOIs
Publication statusAccepted/In press - 2021

Keywords

  • Complex trends
  • Endogeneity
  • Global warming
  • Instrumental variables
  • Testing for common trends

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