Transmission of uncertainty shocks: Learning from heterogeneous responses on a panel of EU countries Vrije Universiteit Brussel
Numerous recent studies, starting with Bloom (2009), highlight the impact of uncertainty on economic activity. These studies mostly focus on individual countries, while cross-country evidence is scarce. In this paper, we use a set of (panel) BVAR models to study the effect of uncertainty shocks on economic developments in EU Member States. We derive new proxies of domestic uncertainty for individual Member States using dispersion of answers ...