Policy Uncertainty & Corporate Investment
Policymakers needed rigorous evidence on whether economic policy uncertainty causally suppresses firm-level investment across the US economy.
Processed a 1.75 GB institutional panel of 730K+ financial records and replicated Baker, Bloom & Davis (2016) using high-dimensional fixed-effects regressions, benchmarked against Stata estimators for validation.
A one-standard-deviation rise in policy uncertainty is associated with a statistically significant decline in capital expenditure, with effects strongest in policy-sensitive sectors.
Delivered causal estimates robust enough to support macroeconomic policy evaluation, replicating a landmark result on a 730K+ record panel.
Fixed-effects regression tables, coefficient plots, and sector-level investment response curves.