Assoc. Prof. Simon Scheidegger

Disaggregating Climate Change Risk Across Regions

During his stay at CES, Simon Scheidegger will collaborate with Karen Pittel, Christian Traeger, and Aleksandra Friedl on a DFG-funded project that disaggregates climate change risk across world regions. While most integrated assessment models evaluate climate risk for a single global representative agent, this project explicitly models multiple regions. This approach allows the team to directly study idiosyncratic and correlated shocks, long-run uncertainty about warming and damages, and the channels through which risk spreads or is hedged, namely trade, technology diffusion, adaptation, and insurance. Building on Deep Equilibrium Nets (DEQN), a neural network method he co-developed, the team solves stochastic multi-region models that were previously out of reach due to the curse of dimensionality, cross-validating the numerical results against analytic solutions.

Mr. Scheidegger's broader research lies at the intersection of computational economics, machine learning, and macro-finance, with applications to climate economics, asset pricing, optimal carbon taxation, and mechanism design. A recurring theme in his work is the design of global solution and estimation methods that scale efficiently on modern high-performance computing architectures.

Dr. Simon Scheidegger is a Professor of Economics at HEC Lausanne. He is a Research Professor at the Research Centre of the Deutsche Bundesbank, a Visiting Senior Fellow at the Grantham Research Institute at the London School of Economics, and was a Research Fellow at the Bank for International Settlements. He has held visiting positions at the Hoover Institution, the Cowles Foundation at Yale, MIT Sloan, and the University of Pennsylvania. His work has appeared in outlets such as Econometrica, The Review of Economic Studies, or the Journal of Financial Economics. He co-leads the open-source platform Dynare and holds a PhD in theoretical physics from the University of Basel.