The article "What Do We Learn from the Weather? The New Climate-Economy Literature" by Melissa Dell, Benjamin F. Jones, and Benjamin A. Olken reviews the growing body of research that uses panel methods to examine the impact of temperature, precipitation, and windstorms on economic outcomes. The authors highlight the challenges in isolating the effects of climate on the economy due to the spatial correlation of climate data. They introduce the "weather variation" approach, which focuses on short-term temporal variations within a given spatial area, to address these challenges. This method leverages exogenous variation in weather over time to causally identify the effects of weather on various economic outcomes, including agricultural output, energy demand, labor productivity, health, conflict, and economic growth. The paper provides a comprehensive guide to the methodologies, datasets, and findings of this new literature. It discusses the advantages of the panel approach, such as its ability to causally identify effects and its robustness to omitted variable bias. The authors also review the data sources used, including ground station data, gridded data, satellite data, and reanalysis data, and provide guidance on how to aggregate these data for economic analysis. The review covers a wide range of economic and political outcomes, demonstrating that temperature, precipitation, and extreme weather events have significant and statistically meaningful impacts on various aspects of the economy. These findings have implications for understanding historical, present, and future economic outcomes, as well as for policy design in areas such as public health, energy infrastructure, and agricultural technologies. The authors also discuss the potential applications of this literature to assess the economic costs of future climate change, emphasizing the need to bridge short-run weather effects to longer-run climate change processes.The article "What Do We Learn from the Weather? The New Climate-Economy Literature" by Melissa Dell, Benjamin F. Jones, and Benjamin A. Olken reviews the growing body of research that uses panel methods to examine the impact of temperature, precipitation, and windstorms on economic outcomes. The authors highlight the challenges in isolating the effects of climate on the economy due to the spatial correlation of climate data. They introduce the "weather variation" approach, which focuses on short-term temporal variations within a given spatial area, to address these challenges. This method leverages exogenous variation in weather over time to causally identify the effects of weather on various economic outcomes, including agricultural output, energy demand, labor productivity, health, conflict, and economic growth. The paper provides a comprehensive guide to the methodologies, datasets, and findings of this new literature. It discusses the advantages of the panel approach, such as its ability to causally identify effects and its robustness to omitted variable bias. The authors also review the data sources used, including ground station data, gridded data, satellite data, and reanalysis data, and provide guidance on how to aggregate these data for economic analysis. The review covers a wide range of economic and political outcomes, demonstrating that temperature, precipitation, and extreme weather events have significant and statistically meaningful impacts on various aspects of the economy. These findings have implications for understanding historical, present, and future economic outcomes, as well as for policy design in areas such as public health, energy infrastructure, and agricultural technologies. The authors also discuss the potential applications of this literature to assess the economic costs of future climate change, emphasizing the need to bridge short-run weather effects to longer-run climate change processes.