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Asymmetric Effects of the COVID-19 Outbreak on Economic Policy Uncertainty

Author

Listed:
  • Nagmi Aimer
  • Abdulmula Lusta

    (Economics Department, Higher Institute of Marine Sciences Techniques, Libya)

Abstract

We examine the asymmetric impact of the COVID-19 pandemic on Economic Policy Uncertainty Index for United States (EPU). Our results indicate that the pandemic has had a long-term impact on EPU. In addition, there is no strong short-term impact of the epidemic on EPU. We also find symmetric effects of the COVID-19 shock (positive and negative) on EPU and note that the effects of the two shocks are quite similar.

Suggested Citation

  • Nagmi Aimer & Abdulmula Lusta, 2023. "Asymmetric Effects of the COVID-19 Outbreak on Economic Policy Uncertainty," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 4(2), pages 1-6.
    • Handle: RePEc:ayb:jrnael:91
    DOI: 2023/06/12
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    References listed on IDEAS

    as
    1. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    2. Beugelsdijk, Sjoerd & Frijns, Bart, 2010. "A cultural explanation of the foreign bias in international asset allocation," Journal of Banking & Finance, Elsevier, vol. 34(9), pages 2121-2131, September.
    3. Hui-Chu Shu & Jung-Hsien Chang, 2015. "Investor Sentiment and Financial Market Volatility," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 16(3), pages 206-219, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    EPU; NARDL; COVID-19;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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