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We construct a time series of political party ideology, based on Poole and Rosenthal's (1997) NOMINATE scores, for the 1950-98 period. The results show that (1) party ideology has become increasingly more polarized over this period; and (2) that it is very sensitive to business cycle conditions....
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This paper decomposes government spending into its temporary and permanent components using Baker’s et. al. economic policy uncertainty (EPU) in a bivariate SVAR setting with long-run constraints, a la Blanchard and Quah (1989). To illustrate the applicability of the bivariate moving average...
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