Temperature Shocks and Establishment Sales

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