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April 23 — After French President Emmanuel Macron succeeded in pushing a new pension system into law April 15, by avoiding any vote except from the nine former officeholders on the Constitutional Council, he and his cabinet members have been taking short trips throughout France, allegedly to listen to the…
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The question of whether firms are able to adapt to a changing climate is central to understanding the long-run economic effects of climate change. This column presents evidence from Italy showing that high temperatures affect firm demography by reducing the entry of newborn firms in the market and increasing business closures, while relocation to colder areas plays a minor role. Balance sheet data reveal a dichotomy between large firms, which successfully adapt improving their profitability, and smaller ones for which negative temperature spillovers become entrenched.