https://macropaperwarehouse.com/authors/diego-r.-kanzig/Diego R. KänzigHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/the-macroeconomic-impact-of-climate-change-global-versus-local-temperature/https://macropaperwarehouse.com/papers/the-macroeconomic-impact-of-climate-change-global-versus-local-temperature/<p>The paper shows that the macroeconomic impact of climate change is <strong>an order of magnitude larger</strong> than what standard country-level panel estimates suggest. The key identification innovation is to measure the effect of global mean temperature shocks using time-series local projections, rather than using cross-country variation in local temperatures as in the conventional panel literature. A shock to global mean temperature tracks extreme weather events (droughts, heat waves, wind, precipitation anomalies) that affect all countries simultaneously; a local temperature anomaly in one country does not.</p>