Temperature and Growth: A Panel Analysis of the United States

Riccardo Colacito, Bridget Hoffmann and Toan Phan

Journal of Money, Credit and Banking, 2019, vol. 51, issue 2-3, 313-368

Abstract: We document that seasonal temperatures have significant and systematic effects on the U.S. economy, both at the aggregate level and across a wide cross section of economic sectors. This effect is particularly strong for the summer: a 1oF increase in the average summer temperature is associated with a reduction in the annual growth rate of state‐level output of 0.15 to 0.25 percentage points. We combine our estimates with projected increases in seasonal temperatures and find that rising temperatures could reduce U.S. economic growth by up to one‐third over the next century.

Date: 2019
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Citations: View citations in EconPapers (105)

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https://doi.org/10.1111/jmcb.12574

Related works:
Working Paper: Temperature and Growth: A Panel Analysis of the United States (2018)
Working Paper: Temperature and Growth: A Panel Analysis of the United States (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:51:y:2019:i:2-3:p:313-368

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