Why Has US Policy Uncertainty Risen since 1960?
Scott R. Baker, Nicholas Bloom, Brandice Canes-Wrone, Steven J. Davis, Jonathan Rodden
American Economic Review · 2014 · Volume 104 · Issue 5
Abstract
We consider two classes of explanations for the rise in policy-related economic uncertainty in the United States since 1960. The first stresses growth in government spending, taxes, and regulation. A second stresses increased political polarization and its implications for the policymaking process and policy choices.
Keywords
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior, Macroeconomics: Production, Monetary Policy, Policy Objectives, Policy Designs and Consistency, Policy Coordination, Fiscal Policy, National Government Expenditures and Related Policies: General, Economics of Regulation
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