The Economic Impact of Low- and High-Frequency Temperature Changes

Temperature variations at different frequencies may have distinct impacts on economic outcomes. We first explore ways to estimate the low- and high-frequency components in a U.S. panel of 48 states. All methods suggest slowly evolving low-frequency components of temperature at the state level, and that they share a common factor which covaries with the low-frequency component of economic activity. While we fail to find a statistically significant impact of low-frequency temperature changes on U....