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The
ongoing focus on the two Presidential candidates, Donald Trump and Hillary
Clinton, has been increasingly intense. The limelight, we suspect, is
partly because of the growing sense of Congressional dysfunction in recent
years. Both the “Partisan Conflict Index” (constructed by Azzimonti,
previously from the Philly Fed) and “Political Polarization” measure
(calculated based on a scaling procedure from Poole and Rosenthal) have
risen to record high levels (kindly refer to chart 1), implying continued
gridlock in Congress. Hence, the Congressional elections (for the entire
House and 34 Senate seats) in November are as crucial as the Presidential
matchup.
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