Economic policy uncertainty and stock market returns in selected eurozone countries

Bayar Y., Aytemiz L.

Journal of Applied Economic Sciences, cilt.10, sa.1, ss.152-158, 2015 (Scopus) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 10 Sayı: 1
  • Basım Tarihi: 2015
  • Dergi Adı: Journal of Applied Economic Sciences
  • Derginin Tarandığı İndeksler: Scopus
  • Sayfa Sayıları: ss.152-158
  • Anahtar Kelimeler: Economic policy uncertainty, Panel causality test, Stock market returns
  • Uşak Üniversitesi Adresli: Evet

Özet

The uncertainties in economic policies may affect macroeconomic variables by affecting the decision making process of the economic agents. This paper examines the impact of economic policy uncertainty in selected Eurozone member countries on stock market returns during the period January 2001-December 2014 by using Dumitrescu and Hurlin (2012) panel causality test. The causality results indicated that there was no causality from economic policy uncertainty at both country level and common level to stock markets, but there was causality from stock market to EPU indexes. On the other hand there was bidirectional causality between stock market and dollar/euro exchange rate.