Consumer and business confidence connectedness in the euro area: a tale of two crises

Adrian Fernandez-Perez, Marta Gómez-Puig and Simon Sosvilla-Rivero

Applied Economic Analysis, 2024, vol. 33, issue 98, 77-91

Abstract: PurposeThe purpose of this study is to examine the propagation of consumer and business confidence in the euro area with a particular focus on the global financial crisis (GFC), the European sovereign debt crisis (ESDC) and the COVID-19-induced Great Lockdown.Design/methodology/approachThe authors apply Diebold and Yilmaz’s connectedness framework and the improved method based on the time-varying parameter vector autoregressive model.FindingsThe authors find that although the evolution of business confidence marked the GFC and the ESDC the role of consumer confidence (mainly in those countries with stricter containment and closure measures) increased in the COVID-19-induced crisis.Originality/valueThe findings are related to the different origins of the examined crisis periods, and the analysis of their interrelationship is a very relevant topic for future research.

Keywords: C53; E66; E71 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/aea/article/33/98/77/12484 ... nce-connectedness-in (text/html)
https://www.emerald.com/aea/article-pdf/33/98/77/10062954/aea-01-2024-0028en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:aeapps:aea-01-2024-0028

DOI: 10.1108/AEA-01-2024-0028

Access Statistics for this article

Applied Economic Analysis is currently edited by Carmen D??az-Mora and Francisco Requena

More articles in Applied Economic Analysis from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().