TY  - JOUR
AU  - Dell,Melissa
AU  - Jones,Benjamin F.
AU  - Olken,Benjamin A.
TI  - Temperature and Income: Reconciling New Cross-Sectional and Panel Estimates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14680
PY  - 2009
Y2  - January 2009
UR  - http://www.nber.org/papers/w14680
L1  - http://www.nber.org/papers/w14680.pdf
N1  - Author contact info:
Melissa Dell
Department of Economics
Harvard University
Littauer M-24
Cambridge, MA 02138
Tel: 617/384-7272
Fax: 617/495-7730
E-Mail: melissadell@fas.harvard.edu

Benjamin Jones
Northwestern University
Kellogg School of Management
Department of Management and Strategy
2001 Sheridan Road
Evanston, IL  60208
Tel: 847/491-3177
Fax: 847/467-1777
E-Mail: bjones@kellogg.northwestern.edu

Benjamin A. Olken
Department of Economics
MIT
50 Memorial Drive
Cambridge, MA  02142-1347
Tel: 617/588-1437
Fax: 617/868-2742
E-Mail: bolken@mit.edu
AB  - This paper presents novel evidence and analysis of the relationship between temperature and income. First, using sub-national data from 12 countries in the Americas, we provide new evidence that the negative cross-country relationship between temperature and income also exists within countries and even within states. Second, we provide a theoretical framework for reconciling the substantial, negative association between temperature and income in the cross-section with the even stronger short-run effects of temperature estimated by panel models. The theoretical framework suggests that half of the negative short-term effects of temperature may be offset in the long run through adaptation.
ER  -