Climate change, firms and aggregate productivity

Our paper uses a general equilibrium framework to examine the effects of temperature on firm-level demand, productivity and input allocative efficiency. Using data from Italian firms and detailed climate data, it uncovers a sizeable negative effect of extreme temperatures on firm-level productivity. Based on these estimates, the model generates aggregate productivity losses from local temperature fluctuations that are higher than previously thought, ranging from 0.60% to 6.82% depending on the scenario and the extent of adaptation.

On Becoming a Purposeful Warrior

In this episode of Economics and Beyond with Rob Johnson, Michigan Secretary of State Jocelyn Benson discusses her book The Purposeful Warrior, which explores choosing courage over fear and standing up for democracy. She reflects on her experiences during the 2020 election, her work in civil rights, education, and sports, and her potential run for governor. Benson emphasizes resilience, unity, and the power of arts and activism to inspire change.

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