2020, Volume 73 - Issue 4
RSS feed citation: At RePEc
Publication date: 19 November 2020
THE PROSPECTS FOR INTERNATIONAL ECONOMIC RELATIONS FOLLOWING THE COVID19 EMERGENCYRead the article
UNITED STATES-CHINA TRADE WAR AND THE EMERGENCE OF GLOBAL COVID-19 PANDEMICRead the article
WHEN THE CONTAGION EFFECT WENT LIVE: THE FIRST RESPONSES TO THE COVID-19 PANDEMICRead the article
THE IDES OF MARCH. DID ITALIAN COVID-19 CRISIS FUEL US ECONOMIC POLICY UNCERTAINTY?Read the article
Georgios GARAFAS, Department of Business Administration of Food and Agricultural Enterprises, University of Patras, Greece
Dimitrios DIMITRIOU, Department of Business Administration, Athens University of Economic and Business, Athens, Greece
This paper empirically investigates the possibility the Italian severe hit from the COVID-19 pandemic increased the US’s Economic Policy Uncertainty (EPU) index. Using Johansen cointegration and Granger causality econometric techniques, we conclude that the above relationship holds. It seems that the recent COVID-19 disaster occurred in Italy (due to high death toll) fueled the economic uncertainty in the US. It is high possible, the anxiety of US citizens propelled this pattern. These results show that the policy makers should be more cautious for the global propagation of COVID-19, in order to improve their political decisions, even in the US.
D80, E66, F68
Economic Uncertainty, VAR, Cointegration, Granger Causality, COVID-19
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