Economic Policy Uncertainty in the United States and Europe: A Cointegration Test

Abstract:     
Economic uncertainty is closely followed and analysed by businesses, policy makers and academic scholars because the world economies have now become very closely interconnected more than ever. This study is to examine a relationship between economic policy uncertainty between the United States and Europe. The results reveal a long-run equilibrium relationship (cointegration) in economic policy uncertainty between the United States and Europe. The findings provide evidence of the interconnectedness of economic conditions between the United State and Europe in line with the international transmission and spill-over literature.

Number of Pages in PDF File: 5

Keywords: economic policy uncertainty, cointegration

JEL Classification: E60

Accepted Paper Series