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Policy uncertainty: a new indicator


  • Scott R. Baker
  • Nicholas Bloom
  • Steven J. Davis


The damaging impact of economic uncertainty on growth has been reasonably well studied - but what happens when there is uncertainty about economic policy-making? Nicholas Bloom and colleagues have developed a measure of this distinct kind of uncertainty, one that shows the value of restoring stability to current policy actions.

Suggested Citation

  • Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2012. "Policy uncertainty: a new indicator," CentrePiece - The Magazine for Economic Performance 362, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepcnp:362

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    References listed on IDEAS

    1. Daron Acemoglu, 2012. "The World our Grandchildren Will Inherit: The Rights Revolution and Beyond," NBER Working Papers 17994, National Bureau of Economic Research, Inc.
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    3. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    4. Mauro Giorgio Marrano & Jonathan Haskel & Gavin Wallis, 2009. "What Happened To The Knowledge Economy? Ict, Intangible Investment, And Britain'S Productivity Record Revisited," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 686-716, September.
    5. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 90(1), pages 156-162.
    6. William D. Nordhaus, 1992. "Lethal Model 2: The Limits to Growth Revisited," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(2), pages 1-60.
    7. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    8. Carol Corrado & Charles Hulten & Daniel Sichel, 2009. "Intangible Capital And U.S. Economic Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 661-685, September.
    9. Robert J. Gordon, 2009. "Misperceptions About the Magnitude and Timing of Changes in American Income Inequality," NBER Working Papers 15351, National Bureau of Economic Research, Inc.
    10. Clinton P. McCully & Brian C. Moyer & Kenneth J. Stewart, 2007. "A Reconciliation between the Consumer Price Index and the Personal Consumption Expenditures Price Index," BEA Papers 0079, Bureau of Economic Analysis.
    11. Edward N. Wolff & Ajit Zacharias & Thomas Masterson, 2012. "Trends In American Living Standards And Inequality, 1959–2007," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(2), pages 197-232, June.
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    Blog mentions

    As found by, the blog aggregator for Economics research:
    1. Graph of the week: A crisis of confidence driven by policy decisions
      by Vuk Vukovic in Don't worry, I'm an economist on 2012-04-06 00:05:00
    2. Shaking things up in China
      by ? in FRED blog on 2016-09-15 18:00:07


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    Cited by:

    1. Ricco, Giovanni & Callegari, Giovanni & Cimadomo, Jacopo, 2016. "Signals from the government: Policy disagreement and the transmission of fiscal shocks," Journal of Monetary Economics, Elsevier, vol. 82(C), pages 107-118.
    2. Scheffel, Eric Michael, 2012. "Political uncertainty in a data-rich environment," MPRA Paper 37318, University Library of Munich, Germany.

    More about this item


    US economic policy; global financial markets;

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