15  Monthly/Quarterly/Annual Comparison (LP)

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Objectives

This chapter compares the response of agricultural production to a standard weather shock depending on the aggregation level of the agricultural data: monthly (as in Chapter 7), quarterly (Chapter 13), or annual (Chapter 14).

library(tidyverse)

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Let us load the theme function for graphs:

source("../weatherperu/R/utils.R")

Let us now load the estimations made in Chapter 7 with monthly production data:

load("../R/output/df_irfs_lp_piscop.rda")

Those made in Chapter 13 with quarterly production data:

load("../R/output/df_irfs_lp_quarter.rda")

And the estimations made in Chapter 14 with annual production data:

load("../R/output/df_irfs_lp_year.rda")

Let us merge the IRfs. We need to make sure that the values for each quarter are repeated 3 times so that the horizons can be compared. The same reasoning applies to annual data for which each year response is repeated 12 times.

df_irfs_lp_comparison <- df_irfs_lp |> 
  mutate(data_type = "monthly") |> 
  bind_rows(
    df_irfs_lp_quarter |> 
      mutate(data_type = "quarterly") |> 
      mutate(count = 3) |> 
      uncount(count) |> 
      group_by(crop, horizon, name) |> 
      mutate(
        horizon = ifelse(
          horizon != 0, 
          yes = (horizon-1)*3 + row_number(), no = 0
        )
      )
  ) |> 
  bind_rows(
    df_irfs_lp_year |> 
      mutate(data_type = "annual") |> 
      mutate(count = 12) |> 
      uncount(count) |> 
      group_by(crop, horizon, name) |> 
      mutate(
        horizon = ifelse(
          horizon != 0, 
          yes = (horizon-1)*12 + row_number(), no = 0
        )
      )
  ) |> 
  mutate(
    data_type = factor(
      data_type,
      levels = c("monthly", "quarterly", "annual"),
      labels = c("Monthly", "Quarterly", "Annual")
    )
  )

We do the same with confidence intervals:

df_irfs_lp_ci_comparison <- df_irfs_lp_ci |> 
  mutate(data_type = "monthly") |> 
  bind_rows(
    df_irfs_lp_ci_quarter |> 
      mutate(data_type = "quarterly") |> 
      mutate(count = 3) |> 
      uncount(count) |> 
      group_by(crop, horizon, name, level) |> 
      mutate(
        horizon = ifelse(
          horizon != 0, 
          yes = (horizon-1)*3 + row_number(), no = 0
        )
      )
  ) |> 
  bind_rows(
    df_irfs_lp_ci_year |> 
      mutate(data_type = "annual") |> 
      mutate(count = 12) |> 
      uncount(count) |> 
      group_by(crop, horizon, name, level) |> 
      mutate(
        horizon = ifelse(
          horizon != 0, 
          yes = (horizon-1)*12 + row_number(), no = 0
        )
      )
  ) |> 
  mutate(
    data_type = factor(
      data_type,
      levels = c("monthly", "quarterly", "annual"),
      labels = c("Monthly", "Quarterly", "Annual")
    )
  )

Then, we can plot the IRfs:

nb_h <- 14

# Duration of the growing season
gs_duration_df <- tribble(
  ~crop, ~tc,
  "Rice", 4,
  "Maize", 5,
  "Potato", 6,
  "Cassava", 9
)
ggplot() +
  geom_ribbon(
    data = df_irfs_lp_ci_comparison |> 
      filter(level == "68%", horizon <= !!nb_h),
    mapping = aes(
      x = horizon,
      ymin = lower, ymax = upper, fill = data_type, colour = data_type),
    alpha = .2, linetype = "dashed"
  ) +
  geom_line(
    data = df_irfs_lp_comparison |> filter(horizon <= !!nb_h),
    mapping = aes(x = horizon, y = shock_1_sd, colour = data_type)
  ) +
  scale_colour_manual(
    NULL, 
    values = c("Monthly" = "#56B4E9", "Quarterly" = "#E69F00", "Annual" = "#CC79A7")
  ) +
  geom_hline(yintercept = 0, colour = "gray40") +
  geom_vline(
    data = gs_duration_df, 
    mapping = aes(xintercept = tc),
    colour = "#D55E00", linetype = "dashed") +
  ggh4x::facet_grid2(
    name~crop, 
    # scales = "free_y", 
    axes = "all",
    # independent = "y", 
    switch = "y") +
  scale_y_continuous(labels = scales::percent) +
  scale_x_continuous(breaks = seq(0, nb_h, by = 2)) +
  labs(x = "Horizon (in months)", y = NULL) +
  scale_fill_manual(
    NULL,
    values = c("Monthly" = "#56B4E9", "Quarterly" = "#E69F00", "Annual" = "#CC79A7")
  ) +
  theme_paper() +
  theme(strip.placement = "outside")

Figure 15.1: Agricultural production response to a weather shock, using either monthly, quarterly, or annual data.