Empirical Evidence Regarding the Impact of Economic Growth and Inflation on Economic Sentiment and Household Consumption

Bătrâncea, Larissa

doi:10.3390/jrfm14070336

Cited by 18 publications

(11 citation statements)

References 36 publications

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“…In any case, the fact that there is a higher concentration of variable values far from the mean (tails), together with a lower This explains the shape of the frequency/probability distribution, which demonstrates thicker tails, a sharper center, and a lower proportion of intermediate values between the peak and tails. In order to detect possible multicollinearity in the variables, we used the variance inflation factor (VIF) following Batrancea (2021a) and L. M. Batrancea (2021b). The VIF calculations can be found in the Appendix, as Table A.2.…”

Section: Resultsmentioning

confidence: 99%

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

Náñez Alonso,

Jorge-Vázquez,

Echarte Fernández

et al. 2024

Humanit Soc Sci Commun

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A number of financial bubbles have occurred throughout history. The objective of this study was to identify the main similarities between Bitcoin price behavior during bubble periods and a number of historical bubbles. Once this had been carried out, we aimed to determine whether the solutions adopted in the past would be effective in the present to reduce investors’ risk in this digital asset. This study brings a new approach, as studies have previously been conducted analyzing the similarity of Bitcoin bubbles to other bubbles individually, but these were not conducted in such a broad manner, addressing different types of bubbles, and over such a broad time period. Starting from a dataset with 9967 records, a combined methodology was used. This consisted of an analysis of the standard deviations, the growth rates of the prices of the assets involved, the percentage increase in asset prices from the origin of the bubble to its peak and its fundamental value, and, finally, the bubble index. Lastly, correlation statistical analysis was performed. The results obtained from the combination of the above methods reveal the existence of certain similarities between the Bitcoin bubbles (2011, 2013, 2017, and 2021) and the tulip bubble (1634–1637) and the Mississippi bubble (1719–1720). We find that the vast majority of the measures taken to avoid past bubbles will not be effective now; this is due to the digital and decentralized nature of Bitcoin. A limitation of the study is the difficulty in making a comparison between bubbles that occurred at different historical points in time. However, the results obtained shed light and provide guidance on the actions to be taken by regulators to ensure the protection of investors in this digital asset.

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Section: Resultsmentioning

confidence: 99%

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

Náñez Alonso,

Jorge-Vázquez,

Echarte Fernández

et al. 2024

Humanit Soc Sci Commun

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“…It shows that over the period under review the consumption bundles of the poorest components of the EU population increased by 11.2%, which caused the Gini indicator to change by 0.04 points. Another author such (Batrancea, 2021) draws attention to changes in consumption behavior as a result of the latest global developments. The analysis covers the EU28 and aims to quantify the impact of economic growth and inflation on ESI and household consumption between December 2019 and October 2020.…”

Section: Prices and Inflationmentioning

confidence: 99%

Quantifying the Economic Survive Across the Eu Using Markov Probability Chains

Ionescu,

Zlati,

Antohi

et al. 2024

Technological and Economic Development of Economy

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The multiple global crisis has made the economies of the world’s countries, including EU’s economy, vulnerable through the downgrading of the pandemic and the subsequent outbreak of geo-political conflict. These two events had the effect of decelerating the European economy and increasing the poverty level of the population, even that these developments are weaker than in rest of the world. The main objective of the present scientific approach is to identify a risk function based on Markov probability chains and to assess the possibilities of economic recovery through a package of policies structured over different time horizons. The used methods consist of meta-analysis, statistical analysis and geo-spatial and temporal modelling. The results of the study capture the integrated developments of risk-generating macroeconomic elements such as inflation, unemployment, public debt growth in a regionally segregated manner. These elements are useful for supranational decision-makers to increase the economic survival rate after multiple shocks through our proposed policy package.

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“…Multiple studies have shown that inflation and oil prices positively impact the growth rate of different nations (Uddin, 2021;Jassim et al, 2021;Dinh, 2020). Several studies have shown a negative correlation between oil prices and inflation rates (Xia, 2021;Batrancea, 2021;Helali et al, 2021). Several studies point to an asymmetric effect (Rumbia et al, 2020;Chugunov et al, 2021).…”

Section: Literature Review On the Impact Of Industrial Value-added An...mentioning

confidence: 99%

Riding the Waves of Fluctuating Oil Prices: Decoding the Impact on Economic Growth

Triantoro

Akhtar

Khan

et al. 2023

IJEEP

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Oil price fluctuations have always been controversial and remain significant in how a country's economy develops. It is especially easy for the worldwide price of natural resources to fluctuate, putting developing nations at risk of economic instability. Consider Pakistan's economy, which is very sensitive to changes in oil prices due to its reliance on the commodity. This research analyses the effects of oil prices on several macroeconomic indicators, including inflation, imports, gross savings, domestic lending to the private sector (DCPS), and industrial value-added in Pakistan. The study uses an error-correcting framework known as autoregressive distributed lag (ARDL) modelling to examine long-term connections between variables and their short-term implications. Additionally, data acquired between 1970 and 2020 was analyzed using Granger causality tests, impulse response functions (IRFs), and variance decomposition analyses (VDAs). The study found that inflation and domestic loans to the private sector hampered economic development in the near run. Conversely, imports, gross savings, industrial value added, and oil rents have a positive effect. A long-term connection between these variables was verified using the boundaries test. A unidirectional link was found in the causality tests between economic growth and imports, inflation and economic growth, and gross saving and domestic credit. An inverse link between domestic credit and inflation was found. The effect of oil rents on economic development in Pakistan is expected to rise during the next four years, according to the forecasts, before levelling out. According to the VDA results, the most critical factor influencing Pakistan's economic development over the next decade would be domestic lending to the private sector. Following these empirical results, the study proposes policy adjustments that might help Pakistan's economy expand more quickly and sustainably.

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Empirical Evidence Regarding the Impact of Economic Growth and Inflation on Economic Sentiment and Household Consumption

Cited by 18 publications

References 36 publications

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

Bitcoin’s bubbly behaviors: does it resemble other financial bubbles of the past?

Quantifying the Economic Survive Across the Eu Using Markov Probability Chains

Riding the Waves of Fluctuating Oil Prices: Decoding the Impact on Economic Growth

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