Policy Uncertainty and the Demand for Money in the United States

This paper aims to examine the effects of economic policy uncertainty (measured by the World Uncertainty Index—WUI) on the level of CO2 emissions in the United States for the period from 1960 to 2016. For this purpose, we consider the unit root test with structural breaks and the autoregressive-distributed lag (ARDL) model. We find that the per capita income promotes CO2 emissions in the long run. Similarly, the WUI measures are positively associated with CO2 emissions in the long run. Energy prices negatively affect CO2 emissions both in the short run and the long run. Possible implications of climate change are also discussed.

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THE DEMAND FOR LIQUID ASSETS: EVIDENCE FROM THE MINFLEX LAURENT DEMAND SYSTEM WITH CONDITIONALLY HETEROSKEDASTIC ERRORS

Macroeconomic Dynamics ◽

10.1017/s1365100517001006 ◽

2018 ◽

Vol 23 (07) ◽

pp. 2941-2958

Author(s):

Dongfeng Chang ◽

Apostolos Serletis

Keyword(s):

United States ◽

Covariance Matrix ◽

Financial Econometrics ◽

The United States ◽

Demand System ◽

Demand Systems ◽

Time Varying ◽

Conditional Covariance ◽

Demand For Money ◽

Monetary Assets

We investigate the demand for money and the degree of substitutability among monetary assets in the United States using the generalized Leontief and the Minflex Laurent (ML) models as suggested by Serletis and Shahmoradi (2007). In doing so, we merge the demand systems literature with the recent financial econometrics literature, relaxing the homoskedasticity assumption and instead assuming that the covariance matrix of the errors of flexible demand systems is time-varying. We also pay explicit attention to theoretical regularity, treating the curvature property as a maintained hypothesis. Our findings indicate that only the curvature constrained ML model with a Baba, Engle, Kraft, and Kroner (BEKK) specification for the conditional covariance matrix is able to generate inference consistent with theoretical regularity.

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Elections, Uncertainty and Irreversible Investment

British Journal of Political Science ◽

10.1017/s000712341200049x ◽

2012 ◽

Vol 44 (1) ◽

pp. 83-106 ◽

Cited By ~ 16

Author(s):

Brandice Canes-Wrone ◽

Jee-Kwang Park

Keyword(s):

United States ◽

Housing Market ◽

Economic Activity ◽

The United States ◽

Market Analysis ◽

Policy Uncertainty ◽

Survey Analysis ◽

Market Data ◽

Presidential Candidates ◽

Private Actors

This article argues that the policy uncertainty generated by elections encourages private actors to delay investments that entail high costs of reversal, creating pre-election declines in the associated sectors. Moreover, this incentive depends on the competitiveness of the race and the policy differences between the major parties/candidates. These arguments are tested using new survey and housing market data from the United States. The survey analysis assesses whether respondents’ perceptions of presidential candidates’ policy differences increased the likelihood that they would delay certain purchases and actions. The housing market analysis examines whether elections are associated with a pre-election decline in economic activity, and whether any such decline depends on electoral competitiveness. The results support the predictions and cannot be explained by existing theories.

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The demand for money in the United States

Carnegie-Rochester Conference Series on Public Policy ◽

10.1016/0167-2231(80)90030-5 ◽

1980 ◽

Vol 12 ◽

pp. 273-285 ◽

Cited By ~ 1

Author(s):

Michael J. Hamburger

Keyword(s):

United States ◽

The United States ◽

Demand For Money

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The Economic Policy Uncertainty in China, the United States, and Europe: The Empirical Impact on Chinese Stock Markets

Applied Economics and Finance ◽

10.11114/aef.v6i5.4370 ◽

2019 ◽

Vol 6 (5) ◽

pp. 131

Author(s):

Wannakomol Supachart

Keyword(s):

United States ◽

Economic Policy ◽

Stock Markets ◽

The United States ◽

Policy Uncertainty ◽

Cross Sectional ◽

Economic Policy Uncertainty ◽

Chinese Markets ◽

Chinese Stock Markets ◽

The Impact

The objective of this paper is to analyze the impact of economic policy uncertainty (EPU) in China, the United States, and Europe, which are influent to the Chinese stock markets. We employed Vector Autoregression (VAR) model with relative variables including the EPU indices and three Chinese stock markers indices to display the impulse responses of the markets to the EPUs. Our results indicate that the Chinese stock markets negatively respond to their domestic economic policy uncertainty in the first, second, and third month after the EPU shocks. Moreover, we also found the negative responses of the Chinese markets to the EPU from the United States that require five months to rebalance the markets. However, the Chinese markets seem positively respond to the shocks of the economic policy uncertainty in Europe and also took five months to archive market rebalancing. The significant correlation of the economic policy uncertainty between China and the United States resulted in cross-sectional correlation estimates among the EPU indices. Furthermore, there is the reasonable interesting result to claim that the economic policy uncertainty in China is statistically influenced by their own trade and fiscal policy uncertainty that may be considered to be related with China-US trade war in our conclusion.

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