Princeton, NJ 08544
Institutional Affiliation: Princeton
NBER Working Papers and Publications
|January 2014||Why Has U.S. Policy Uncertainty Risen Since 1960?|
with Scott R. Baker, Nicholas Bloom, Steven J. Davis, Jonathan A. Rodden: w19826
There appears to be a strong upward drift in policy-related economic uncertainty after 1960. We consider two classes of explanations for this rise. The first stresses growth in government spending, taxes, and regulation. A second stresses increased political polarization and its implications for the policy-making process and policy choices. While the evidence is inconclusive, it suggests that both factors play a role in driving the secular increase in policy uncertainty over the last half century.
Published: Scott R. Baker & Nicholas Bloom & Brandice Canes-Wrone & Steven J. Davis & Jonathan Rodden, 2014. "Why Has US Policy Uncertainty Risen since 1960?," American Economic Review, American Economic Association, vol. 104(5), pages 56-60, May. citation courtesy of