Economic policy uncertainty: A literature review

RETRACTED ARTICLE: The effect of energy consumption on the environment in the OECD countries: economic policy uncertainty perspectives

“…Overall, the conclusion from previous studies lent credence to the fact that more conservative policies were best at times of high economic policy uncertainty. This is because the cost of borrowing increases, making firms spend less on capital, leading to an economic downturn (Al-Thaqeb and Algharabali 2019 ).…”

Does insurance demand react to economic policy uncertainty and geopolitical risk? Evidence from Saudi Arabia

“…This paper therefore contributes to the nascent but important literature on economic policy uncertainty initiated by the influential work of Bloom ( 2009 ), who suggests that during times of uncertainty, investing and spending may have proven to be unattractive to the average household, as firms seemed strangely reluctant to develop good decision-making practices in challenging and uncertain regulatory economic environments. According to Al-Thaqeb and Algharabali ( 2019 ), uncertainty has the potential to negatively affect cash flow and the financial condition of the company.…”

“…Moreover, recent crises have increased the need for research on economic uncertainty to deepen existing knowledge on concepts related to the existence, effects and consequences of and methods for avoiding the build up of uncertainty. Considering government and liberalisation policies and their relevance for financial sector development, the extant literature suggests that there are increasing concerns about news-based policy uncertainty, tax legislation expiration and dispersion in economic forecasts, which ultimately lead to financial perturbations (Lee et al 2020 ; Al-Thaqeb and Algharabali 2019 ; Baker et al 2016 ). From a financial perspective, economic uncertainty is largely based on the idea that uncertainty is one of the biggest drivers of stock and bond market return volatility (Fang et al 2017 ), the cost of capital and innovation processes (Xu 2020 ), credit risk and interest rates for banks (Ashraf and Shen 2019 ), and information asymmetry and management disclosures (Nagar et al 2018 ).…”

Economic Policy Uncertainty and Corporate Innovation: Evidence From China

“…Our hypothesis test is important for the following reasons. In recent years, the uncertainty about economic policy is higher than ever before (Al-Thaqeb & Algharabali, 2019;Baker et al, 2016). There is increasing concerns about whether and how this uncertainty would influence firm-level decisions and behaviors (Shen et al, 2020).…”