Temperature Shocks and Establishment Sales

50 Pages Posted: 28 Jun 2019 Last revised: 12 Sep 2019

See all articles by Jawad M. Addoum

Jawad M. Addoum

Cornell University

David T. Ng

Johnson College of Business

Ariel Ortiz-Bobea

Cornell University

Date Written: June 20, 2019


Combining granular daily data on temperatures across the continental U.S. with detailed establishment data from 1990 to 2015, we study the causal impact of temperature shocks on establishment sales and productivity. Using a large sample yielding precise estimates, we find no evidence that temperature exposures significantly affect establishment-level sales or productivity, including among industries traditionally classified as heat-sensitive. At the firm-level, we also find that temperature exposures aggregated across firm establishments are generally unrelated to sales, productivity, and measures of profitability. Our results are consistent with findings of a tenuous relation between temperature and aggregate economic growth in rich countries.

Keywords: Extreme temperature, weather shocks, economic establishments, revenues, earnings

JEL Classification: G12, G14, Q54

Suggested Citation

Addoum, Jawad M. and Ng, David T. and Ortiz-Bobea, Ariel, Temperature Shocks and Establishment Sales (June 20, 2019). Available at SSRN: https://ssrn.com/abstract=3411225 or http://dx.doi.org/10.2139/ssrn.3411225

Jawad M. Addoum (Contact Author)

Cornell University ( email )

Ithaca, NY 14853
United States

David T. Ng

Johnson College of Business ( email )

301G Warren Hall, Cornell University
Ithaca, NY 14850-1967
United States
6072550145 (Phone)

Ariel Ortiz-Bobea

Cornell University ( email )

Ithaca, NY
United States
(607) 255-0220 (Phone)

HOME PAGE: http://ortiz-bobea.dyson.cornell.edu

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