Did weekly economic index and volatility index impact US food sales during the first year of the pandemic?
Abstract We explore the impacts of economic and financial dislocations caused by COVID-19 pandemic shocks on food sales in the United States from January 2020 to January 2021. We use the US weekly economic index (WEI) to measure economic dislocations and the Chicago Board Options Exchange volatility...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2023-02-01
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| Series: | Financial Innovation |
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| Online Access: | https://doi.org/10.1186/s40854-023-00460-y |
| _version_ | 1811165793464877056 |
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| author | Narasingha Das Partha Gangopadhyay |
| author_facet | Narasingha Das Partha Gangopadhyay |
| author_sort | Narasingha Das |
| collection | DOAJ |
| description | Abstract We explore the impacts of economic and financial dislocations caused by COVID-19 pandemic shocks on food sales in the United States from January 2020 to January 2021. We use the US weekly economic index (WEI) to measure economic dislocations and the Chicago Board Options Exchange volatility index (VIX) to capture the broader stock market dislocations. We validate the NARDL model by testing a battery of models using the autoregressive distributed lags (ARDL) methodology (ARDL, NARDL, and QARDL specifications). Our study postulates that an increase in WEI has a significant negative long-term effect on food sales, whereas a decrease in WEI has no statistically significant (long-run) effect. Thus, policy responses that ignore asymmetric effects and hidden cointegration may fail to promote food security during pandemics. |
| first_indexed | 2024-04-10T15:42:23Z |
| format | Article |
| id | doaj.art-c02e2bf11cde48da83924ae41b5b13d0 |
| institution | Directory Open Access Journal |
| issn | 2199-4730 |
| language | English |
| last_indexed | 2024-04-10T15:42:23Z |
| publishDate | 2023-02-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj.art-c02e2bf11cde48da83924ae41b5b13d02023-02-12T12:20:01ZengSpringerOpenFinancial Innovation2199-47302023-02-019112310.1186/s40854-023-00460-yDid weekly economic index and volatility index impact US food sales during the first year of the pandemic?Narasingha Das0Partha Gangopadhyay1Economists for Peace and Security- Australia ChapterWestern Sydney UniversityAbstract We explore the impacts of economic and financial dislocations caused by COVID-19 pandemic shocks on food sales in the United States from January 2020 to January 2021. We use the US weekly economic index (WEI) to measure economic dislocations and the Chicago Board Options Exchange volatility index (VIX) to capture the broader stock market dislocations. We validate the NARDL model by testing a battery of models using the autoregressive distributed lags (ARDL) methodology (ARDL, NARDL, and QARDL specifications). Our study postulates that an increase in WEI has a significant negative long-term effect on food sales, whereas a decrease in WEI has no statistically significant (long-run) effect. Thus, policy responses that ignore asymmetric effects and hidden cointegration may fail to promote food security during pandemics.https://doi.org/10.1186/s40854-023-00460-yCOVID-19Food salesUS weekly economic indexCBOE’s volatility indexARDL modelBewley transformation |
| spellingShingle | Narasingha Das Partha Gangopadhyay Did weekly economic index and volatility index impact US food sales during the first year of the pandemic? Financial Innovation COVID-19 Food sales US weekly economic index CBOE’s volatility index ARDL model Bewley transformation |
| title | Did weekly economic index and volatility index impact US food sales during the first year of the pandemic? |
| title_full | Did weekly economic index and volatility index impact US food sales during the first year of the pandemic? |
| title_fullStr | Did weekly economic index and volatility index impact US food sales during the first year of the pandemic? |
| title_full_unstemmed | Did weekly economic index and volatility index impact US food sales during the first year of the pandemic? |
| title_short | Did weekly economic index and volatility index impact US food sales during the first year of the pandemic? |
| title_sort | did weekly economic index and volatility index impact us food sales during the first year of the pandemic |
| topic | COVID-19 Food sales US weekly economic index CBOE’s volatility index ARDL model Bewley transformation |
| url | https://doi.org/10.1186/s40854-023-00460-y |
| work_keys_str_mv | AT narasinghadas didweeklyeconomicindexandvolatilityindeximpactusfoodsalesduringthefirstyearofthepandemic AT parthagangopadhyay didweeklyeconomicindexandvolatilityindeximpactusfoodsalesduringthefirstyearofthepandemic |