Ioannis D. Vrontos, J. Galakis, E. Panopoulou, Spyridon D. Vrontos
{"title":"Modeling the Economic Impact of the COVID-19 Pandemic Using Dynamic Panel Models and Seemingly Unrelated Regressions","authors":"Ioannis D. Vrontos, J. Galakis, E. Panopoulou, Spyridon D. Vrontos","doi":"10.3390/econometrics12020017","DOIUrl":null,"url":null,"abstract":"The importance of assessing and estimating the impact of the COVID-19 pandemic on financial markets and economic activity has attracted the interest of researchers and practitioners in recent years. The proposed study aims to explore the pandemic’s impact on the economic activity of six Euro area economies. A class of dynamic panel data models and their corresponding Seemingly Unrelated Regression (SUR) models are developed and applied to model the economic activity of six Eurozone countries. This class of models allows for common and country-specific covariates to affect the real growth, as well as for cross-sectional dependence in the error processes. Estimation and inference for this class of panel models are based on both Bayesian and classical techniques. Our findings reveal that significant heterogeneity exists among the different economies with respect to the explanatory/predictive factors. The impact of the COVID-19 pandemic varied across the Euro area economies under study. Nonetheless, the outbreak of the COVID-19 pandemic profoundly affected real economic activity across all regions and countries. As an exogenous shock of such magnitude, it caused a sharp increase in overall uncertainty that spread quickly across all sectors of the global economy.","PeriodicalId":1,"journal":{"name":"Accounts of Chemical Research","volume":"95 8","pages":""},"PeriodicalIF":16.4000,"publicationDate":"2024-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Accounts of Chemical Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.3390/econometrics12020017","RegionNum":1,"RegionCategory":"化学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"CHEMISTRY, MULTIDISCIPLINARY","Score":null,"Total":0}
引用次数: 0
Abstract
The importance of assessing and estimating the impact of the COVID-19 pandemic on financial markets and economic activity has attracted the interest of researchers and practitioners in recent years. The proposed study aims to explore the pandemic’s impact on the economic activity of six Euro area economies. A class of dynamic panel data models and their corresponding Seemingly Unrelated Regression (SUR) models are developed and applied to model the economic activity of six Eurozone countries. This class of models allows for common and country-specific covariates to affect the real growth, as well as for cross-sectional dependence in the error processes. Estimation and inference for this class of panel models are based on both Bayesian and classical techniques. Our findings reveal that significant heterogeneity exists among the different economies with respect to the explanatory/predictive factors. The impact of the COVID-19 pandemic varied across the Euro area economies under study. Nonetheless, the outbreak of the COVID-19 pandemic profoundly affected real economic activity across all regions and countries. As an exogenous shock of such magnitude, it caused a sharp increase in overall uncertainty that spread quickly across all sectors of the global economy.
期刊介绍:
Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance.
Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.