This paper reviews the new climate-economy literature that uses panel methods to examine how temperature, precipitation, and windstorms influence economic outcomes. The authors summarize recent work, providing a guide to its methodologies, datasets, and findings, and consider applications of the new literature, including insights for the "damage function" within models that seek to assess the potential economic effects of future climate change. The paper discusses the challenges of identifying causative effects from cross-sectional evidence and highlights the advantages of panel methodologies, which exploit exogenous variation in weather outcomes over time within a given spatial area to causally identify the effects of weather on economic outcomes. The paper also discusses the implications of the new literature for the "damage function" in climate change models, which consider how future changes in climate will affect economic activity. The authors examine various empirical methodologies that can help bridge toward longer-run effects while maintaining careful identification. The paper concludes by suggesting promising directions forward for this literature.This paper reviews the new climate-economy literature that uses panel methods to examine how temperature, precipitation, and windstorms influence economic outcomes. The authors summarize recent work, providing a guide to its methodologies, datasets, and findings, and consider applications of the new literature, including insights for the "damage function" within models that seek to assess the potential economic effects of future climate change. The paper discusses the challenges of identifying causative effects from cross-sectional evidence and highlights the advantages of panel methodologies, which exploit exogenous variation in weather outcomes over time within a given spatial area to causally identify the effects of weather on economic outcomes. The paper also discusses the implications of the new literature for the "damage function" in climate change models, which consider how future changes in climate will affect economic activity. The authors examine various empirical methodologies that can help bridge toward longer-run effects while maintaining careful identification. The paper concludes by suggesting promising directions forward for this literature.