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Corona, Crisis and Conditional Heteroscedasticity
Örebro University, Örebro University School of Business.ORCID iD: 0000-0001-8124-328x
Örebro University, Örebro University School of Business. National Institute of Economic Research, Stockholm, Sweden.ORCID iD: 0000-0002-4840-7649
2021 (English)In: Applied Economics Letters, ISSN 1350-4851, E-ISSN 1466-4291, Vol. 28, no 9, p. 755-759Article in journal (Refereed) Published
Abstract [en]

In this paper, we illustrate the macroeconomic risk associated with the early stage of the corona- virus outbreak. Using monthly data ranging from July 1991 to March 2020 on a recently developed coincidence indicator of global output growth, we estimate an autoregressive model with GARCH effects and non-Gaussian disturbances. Our results indicate that i) accounting for conditional heteroscedasticity is important and ii) risk, measured as the volatility of the shocks to the process, is at a very high level – largely on par with that experienced around the financial crisis of 2008–2009.

Place, publisher, year, edition, pages
Routledge, 2021. Vol. 28, no 9, p. 755-759
Keywords [en]
GARCH, non-Gaussianity, fan charts, global output growth
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-82712DOI: 10.1080/13504851.2020.1776829ISI: 000543240000001Scopus ID: 2-s2.0-85087007827OAI: oai:DiVA.org:oru-82712DiVA, id: diva2:1436535
Funder
The Jan Wallander and Tom Hedelius Foundation, P18-0201 W19-0021Available from: 2020-06-08 Created: 2020-06-08 Last updated: 2021-08-31Bibliographically approved

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Kiss, TamásÖsterholm, Pär

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