In this paper we show that temperature is an aggregate risk factor that adversely affects economic growth. Our argument … temperature (i.e., temperature betas) contains sharp information about the cross-country risk premium; countries closer to the … Equator carry a positive temperature risk premium which decreases as one moves farther away from the Equator. The differences …

featuring consumption externalities, recursive utility, and jump risk …

a key determinant of risk premia at all investment horizons. As the investment horizon increases, transitory risks …