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Higher policy uncertainty curbs business investment and employment growth

Baker, Scott R., Bloom, Nick and Davis, Steven J. (2015) Higher policy uncertainty curbs business investment and employment growth. USApp - American Politics and Policy Blog (04 Dec 2015). Website.

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The years following the global economic crisis of 2008-2009 have been marked by policy uncertainty, both in the US and across the world. In new research, Scott R. Baker, Nicholas Bloom, and Steven Davis develop an index of economic policy uncertainty to examine how this uncertainty shapes economic outcomes. Using data going back to 1900 and extending coverage to 11 major economies, they find that heightened levels of policy uncertainty leads to firms reducing investment and employment, which in turn contributes to the sluggish growth which many economies have experienced in recent years.

Item Type: Online resource (Website)
Official URL:
Additional Information: © 2015 The Author(s) CC BY-NC 3.0
Divisions: LSE
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
J Political Science > JK Political institutions (United States)
Date Deposited: 08 May 2017 13:36
Last Modified: 23 Sep 2021 23:19

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