EconPapers    
Economics at your fingertips  
 

Policy uncertainty and consumption in G7 countries: An asymmetry analysis

Mohsen Bahmani-Oskooee and Majid Maki Nayeri

International Economics, 2020, vol. 163, issue C, 101-113

Abstract: In this study, we aim at assessing the effects of policy uncertainty on consumption in G7 countries. Unlike previous research, we take an additional step and show that the impacts are asymmetric, which helps us to have a better understanding of the effects of increased versus decreased uncertainty in the G7 economies. Our results suggest that policy uncertainty has indeed asymmetric effects on consumer expenditure in all G7 countries. These findings imply that the positive and the negative shocks could not offset each other’s impact on consumption, which leads to a different path of consumption before and after a period with a high level of uncertainty.

Keywords: Policy uncertainty; Asymmetry; Consumption; G7 (search for similar items in EconPapers)
JEL-codes: F40 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S211070171930304X
Full text for ScienceDirect subscribers only

Related works:
Journal Article: Policy uncertainty and consumption in G7 countries: An asymmetry analysis (2020) Downloads
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:eee:inteco:v:163:y:2020:i:c:p:101-113

DOI: 10.1016/j.inteco.2020.06.001

Access Statistics for this article

International Economics is currently edited by Valerie Mignon and Marcelo Olarreaga

More articles in International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-19
Handle: RePEc:eee:inteco:v:163:y:2020:i:c:p:101-113