Studies from Federal Reserve Bank Describe New Findings in Economics (Input Sourcing Under Climate Risk: Evidence From Us Manufacturing Firms): Economics

2026 JUN 09 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Researchers detail new data in Economics. According to news reporting originating in New York City, New York, by NewsRx journalists, research stated, “We study the effect of risk on how firms organize their supply chains. We use transaction-level data on U.S. manufacturing imports to construct a novel measure of input sourcing risk based on the historical volatility of ocean shipping times.”

Funders for this research include Federal Statistical Research Data Center under FSRDC, Federal Statistical Research Data Center under FSRDC.

The news reporters obtained a quote from the research from Federal Reserve Bank, “Our measure isolates the unexpected component of shipping times that is induced by weather conditions along more than 331,000 maritime routes. We first document that unexpected shipping delays significantly reduce importers’ sales, profits, and employment. We then show that firms actively diversify weather risk by using more routes and foreign suppliers, although their import values decline. To rationalize these findings, we introduce shipping time risk into a general equilibrium model of importing with firm heterogeneity.”

According to the news reporters, the research concluded: “Our quantitative analysis predicts substantial costs for the U.S. economy associated with supply chain risk.”

This research has been peer-reviewed.

For more information on this research see: Input Sourcing Under Climate Risk: Evidence From Us Manufacturing Firms. Review of Economic Studies, 2026. Review of Economic Studies can be contacted at: Oxford Univ Press, Great Clarendon St, Oxford OX2 6DP, England. (Oxford University Press - http://www.oup.com/; Review of Economic Studies - restud.oxfordjournals.org)

Our news correspondents report that additional information may be obtained by contacting Sebastian Heise, Federal Reserve Bank, New York, NY 10045, United States. Additional authors for this research include Joaquin Blaum and Federico Esposito.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1093/restud/rdag031. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

(Our reports deliver fact-based news of research and discoveries from around the world.)