 Did weekly economic index and volatility index impact US food sales during the first year of the pandemic?Narasingha Das and Partha Gangopadhyay Financial Innovation, 2023, vol. 9, issue 1, 1-23 Abstract: Abstract We explore the impacts of economic and financial dislocations caused by COVID-19 pandemic shocks on food sales in the United States from January 2020 to January 2021. We use the US weekly economic index (WEI) to measure economic dislocations and the Chicago Board Options Exchange volatility index (VIX) to capture the broader stock market dislocations. We validate the NARDL model by testing a battery of models using the autoregressive distributed lags (ARDL) methodology (ARDL, NARDL, and QARDL specifications). Our study postulates that an increase in WEI has a significant negative long-term effect on food sales, whereas a decrease in WEI has no statistically significant (long-run) effect. Thus, policy responses that ignore asymmetric effects and hidden cointegration may fail to promote food security during pandemics. Keywords: COVID-19; Food sales; US weekly economic index; CBOE’s volatility index; ARDL model; Bewley transformation; NARDL model; QARDL model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:fininn:v:9:y:2023:i:1:d:10.1186_s40854-023-00460-y Ordering information: This journal article can be ordered from DOI: 10.1186/s40854-023-00460-y Access Statistics for this article Financial Innovation is currently edited by J. Leon Zhao and Zongyi More articles in Financial Innovation from Springer, Southwestern University of Finance and Economics |
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