The time-varying correlation between uncertainty, output, and inflation: Evidence from a DCC-GARCH model

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 118
Issue: 1
Pages: 33-37

Authors (2)

Jones, Paul M. (not in RePEc) Olson, Eric (West Virginia University)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using a new uncertainty index from Baker et al. (2012), we evaluate the time-varying correlation between macroeconomic uncertainty, inflation, and output. Estimation results from a multivariate DCC-GARCH model reveal that the sign of the correlation between macroeconomic uncertainty and inflation changed from negative to positive during the late 1990s, whereas the correlation between uncertainty and output is consistently negative.

Technical Details

RePEc Handle
repec:eee:ecolet:v:118:y:2013:i:1:p:33-37
Journal Field
General
Author Count
2
Added to Database
2026-01-26