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The role of temperature in economic development has been an
important question. It is often documented that hot countries
(or countries closer to equator) tend to be poor. In recent
decades, with the warming at a global scale, scientists and
policy makers are increasingly concerned about the economic
consequence of warmer and drier weather. In this assignment,
you are given historical data on temperature, precipitation, and
economic outcomes for a sample of 106 countries. You are
required to analyse the impact of temperature, precipitation on
income levels (measured by per capita GDP in natural
logarithm), and more important, on income growth (measured
by annual growth of per capita GDP).

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