Does uncertainty affect real activity? Evidence from state-level data
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Volume
167
Pagination
127 - 130
Publisher
Publisher URL
DOI
10.1016/j.econlet.2018.03.026
Journal
Economics Letters
ISSN
0165-1765
Metadata
Show full item recordAbstract
We use variation in the effect of US-wide or global uncertainty on state-level uncertainty to identify the impact of this shock on real activity. We find that increases in uncertainty do have an adverse impact on real income, employment and unemployment. Thus, uncertainty shocks can be a source of economic fluctuations.
Authors
MUMTAZ, HCollections
- Economics and Finance [371]