June 30, 2015 Ideological Divisions in the U.S. May Have Slowed the Economic RecoveryA 10% increase in a partisan-conflict index (based on an analysis of newspaper coverage) is associated with a 3.4% decline in aggregate private investment in the U.S., says Marina Azzimonti of Stony Brook University. The findings support the idea that the deep ideological division between the two main political parties in the U.S. may have been an important factor affecting the aggregate economy, in particular by slowing the recovery from the 2007–2009 recession, Azzimonti says. |
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