Economic Policy Uncertainty in the United States and Europe: A Cointegration Test
International Journal of Economics and Finance, 5(2), 98-101, February 2013
5 Pages Posted: 3 Jun 2012 Last revised: 14 Jul 2013
Date Written: June 3, 2012
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.
Keywords: economic policy uncertainty, cointegration
JEL Classification: E60
Suggested Citation: Suggested Citation