This paper uses annual variation in climate to examine the impact of temperature and precipitation on national economies. We find three primary results. First, higher temperatures substantially reduce economic growth in poor countries. Second, higher temperatures appear to reduce growth rates, not just the level of output.

This paper uses annual variation in temperature and precipitation over the past 50 years to examine the impact of climatic changes on economic activity throughout the world. It find three primary results. First, higher temperatures substantially reduce economic growth in poor countries but have little effect in rich countries.