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A sustainable pandemic response: The impact of COVID-19 vaccination coverage on economic policy uncertainty

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  • Li, Shi
  • Li, Meng
  • Fu, Rongsha

Abstract

The rise in Economic Policy Uncertainty (EPU) is a manifestation of the unsustainability of response policies to COVID-19. We used panel data from 21 countries to investigate the impact of COVID-19 vaccination coverage on EPU. The results showed that vaccination significantly reduced the EPU. Reducing the spread of the pandemic was not the mechanism. Further analysis indicated that the active response from the government has enhanced this effect, as vaccination has altered unsustainable issues. Our study suggests that vaccines are not alternatives to intervention policies but are complementary, and policymakers should opt for a policy mix.

Suggested Citation

  • Li, Shi & Li, Meng & Fu, Rongsha, 2024. "A sustainable pandemic response: The impact of COVID-19 vaccination coverage on economic policy uncertainty," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 316-332.
    • Handle: RePEc:eee:reveco:v:92:y:2024:i:c:p:316-332
    DOI: 10.1016/j.iref.2024.02.055
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    More about this item

    Keywords

    Economic policy uncertainty; COVID-19; Vaccination coverage; Government response;
    All these keywords.

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General

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