Measuring economic policy uncertainty in China

Huang, Yong‐Qing; Luk, Paul

doi:10.1016/j.chieco.2019.101367

Cited by 422 publications

(270 citation statements)

References 8 publications

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“…The China economic uncertainty index used in this article was compiled by Paul Luk’s research team [ 39 ] at Hong Kong Baptist University. They constructed the index using search words from ten Hong Kong newspapers: Wen Wei Po, Sing Pao, etc.…”

Section: Data Descriptionmentioning

confidence: 99%

Information Flow Analysis between EPU and Other Financial Time Series

Yao

2020

Entropy

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We investigate the strength and direction of information flow among economic policy uncertainty (EPU), US imports and exports to China, and the CNY/US exchange rate by using the novel concept of effective transfer entropy (ETE) with a sliding window methodology. We verify that this new method can capture dynamic orders effectively by validating them with the linear transfer entropy (TE) and Granger causality methods. Analysis shows that since 2016, US economic policy has contributed substantially to China-US bilateral trade and that China is making passive adjustments based on this trade volume. Unlike trade market conditions, China’s economic policy has significantly influenced the exchange rate fluctuation since 2016, which has, in turn, affected US economic policy.

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Section: Data Descriptionmentioning

confidence: 99%

Information Flow Analysis between EPU and Other Financial Time Series

Yao

2020

Entropy

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“…(1) Economic policy uncertainty (EPU): in this study, the China EPU index which was compiled by Huang and Luk [11] from the Hong Kong Baptist University was applied. This China EPU index was set up by searching relevant keywords in 10 representative newspapers in mainland China, including Beijing Youth Daily, Guangzhou Daily, Liberation Daily, People's Daily Overseas Edition, Shanghai Morning Post, Southern Urban Daily, Beijing News, Today Evening News, Wen Hui Daily and Yangcheng Evening News.…”

Section: Model Setting and Variable Declarationmentioning

confidence: 99%

“…In addition, it provides a useful reference for the government to formulate economic policies, families to choose economic behavior, and society to provide economic services. This study attempted to address this issue by applying the EPU index of China constructed by Huang and Luk [11] and the households' database of China Family Panel Studies (CFPS) during the period 2010-2018. Moreover, the influencing mechanism of EPU on resident happiness was investigated.…”

Section: Introductionmentioning

confidence: 99%

Assessment of Resident Happiness under Uncertainty of Economic Policies: Empirical Evidences from China

et al. 2020

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The main aim of sustainable development is to increase the quality of life and resident happiness as the latter is one of the most important indicators for the assessment of quality of life. However, due to the uncertainty of economic policies, it will not only have a direct impact on resident well-being but may also indirectly affect resident well-being through specific channels. The economic policies are aimed at the achievement of sustainable development, therefore it is very important to investigate the influences of the uncertainty of economic policies on resident happiness. This allows to assess the sustainability of policies in terms of their inputs to the quality of life. The direct impact of economic policy uncertainty on resident well-being and the mediating effects of household asset allocation and the expectation on the above influencing relationship were analyzed based on the uncertainty index of China’s economic policies and households database of China Family Panel Studies (CFPS) during the period 2010–2018, so as to clarify the complete path of economic policy uncertainty affecting resident happiness. Results show that the uncertainty of economic policy significantly reduces resident happiness. In the context of the uncertainty of economic policies, families can relieve such negative impacts as an increasing proportion of financial assets in their total assets. However, decreases in asset shares for household consumer goods and future expectation obviously lower resident happiness. The research conclusions provide important input in research on the influences of the uncertainty of economic policy on the quality of life and offer new evidences for the development of “happiness economics”.

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“…The EPU index constructed by Baker et al (2016) is currently a more popular measurement index. On this basis, Huang and Luk (2019) is more representative and objective. Therefore, the CNEPU index in this article adopts the version compiled by Huang and Luk (2019).…”

Section: Introductionmentioning

confidence: 99%

“…On this basis, Huang and Luk (2019) is more representative and objective. Therefore, the CNEPU index in this article adopts the version compiled by Huang and Luk (2019).…”

Section: Introductionmentioning

confidence: 99%