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Cato Institute: Industrial Policy’s Inescapable Uncertainty Problem


One of the most widely cited and relevant studies on EPU, by economists Scott Baker, Nick Bloom, and Steven Davis, develops an EPU index based on thousands of newspaper articles and reveals that EPU spiked during not just major shocks like the Gulf wars or failure of Lehman Brothers, but also tight presidential elections when the future of monetary, tax, fiscal, trade, and other federal policies set, implemented or influenced by the executive branch could change dramatically depending on who wins.   

Read more at Cato Institute.