This paper uses detailed production data from a half million Chinese manufacturing plants over 1998-2007 to estimate the effects of temperature on firm-level total factor productivity (TFP), factor inputs, and output. We detect an inverted U-shaped relationship between temperature and TFP and...

Understanding the relationship between temperature and economic growth is critical to the design of optimal climate policies. A large body of literature has estimated a negative relationship between these factors using aggregated data. However, the micro-mechanism behind this relationship...