Steven J Davis

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Many commentators argue that uncertainty about fiscal, monetary and regulatory policy slowed recovery from the 2007-2009 recession. To assess this view, we develop a new index of economic policy uncertainty (EPU) that draws on the frequency of newspaper references to policy uncertainty and other indicators. Our index spikes near tight presidential(More)
We study the variability of business growth rates in the U.S. private sector from 1976 onwards. To carry out our study, we exploit the recently developed Longitudinal Business Database (LBD), which contains annual observations on employment and payroll for all U.S. businesses. Our central finding is a large secular decline in the cross sectional dispersion(More)
M ore than 10 percent of U.S. workers separate from their employers each quarter. Some move directly to a new job with a different employer, some become unemployed and some exit the labor force. The flow of new hires is similarly large, and somewhat larger whenever aggregate employment expands. The magnitude of hires and separations underscores the fluid(More)
CO(2) emissions from the burning of fossil fuels are the primary cause of global warming. Much attention has been focused on the CO(2) directly emitted by each country, but relatively little attention has been paid to the amount of emissions associated with the consumption of goods and services in each country. Consumption-based accounting of CO(2)(More)
This paper develops and applies a simple graphical approach to portfolio selection that accounts for covariance between asset returns and an investor's labor income. Our graphical approach easily handles income shocks that are partly hedgable, multiple risky assets, many periods and life cycle considerations. We apply the approach to occupation-level(More)
As efforts to mitigate climate change increase, there is a need to identify cost-effective ways to avoid emissions of greenhouse gases (GHGs). Agriculture is rightly recognized as a source of considerable emissions, with concomitant opportunities for mitigation. Although future agricultural productivity is critical, as it will shape emissions from(More)
This paper is the first to study vacancies, hires, and vacancy yields at the establishment level in the Job Openings and Labor Turnover Survey, a large sample of US employers. To interpret the data, we develop a simple model that identifies the flow of new vacancies and the job-filling rate for vacant positions. The fill rate moves counter to aggregate(More)
Unemployment inflows fell from 4 percent of employment per month in the early 1980s to 2 percent or less by the mid 1990s and thereafter. U.S. data also show a secular decline in firm-level employment volatility and the job destruction rate. We interpret this decline as a decrease in the intensity of idiosyncratic labor demand shocks, a key parameter in(More)
Slowing climate change requires overcoming inertia in political, technological, and geophysical systems. Of these, only geophysical warming commitment has been quantified. We estimated the commitment to future emissions and warming represented by existing carbon dioxide-emitting devices. We calculated cumulative future emissions of 496 (282 to 701 in lower-(More)