Sakiru Adebola Solarin, Muhammed Sehid Gorus and Veli Yilanci
This study seeks to investigate role of the coronavirus disease 2019 (COVID-19) pandemic on clean energy stocks for the United States for the period 21 January 2020–16 August 2021.
Abstract
Purpose
This study seeks to investigate role of the coronavirus disease 2019 (COVID-19) pandemic on clean energy stocks for the United States for the period 21 January 2020–16 August 2021.
Design/methodology/approach
At the empirical stage, the Fourier-augmented vector autoregression approach has been used.
Findings
According to the empirical results, the response of the clean energy stocks to the feverish sentiment, lockdown stringency, oil volatility, dirty assets, and monetary policy dies out within a short period of time. In addition, the authors find that there is a unidirectional causality from the feverish sentiment index and the lockdown stringency index to the clean energy stock returns; and from the monetary policy to the clean energy stocks. At the same time, there is a bidirectional causality between the lockdown stringency index and the feverish sentiment index. The empirical findings can be helpful to both practitioners and policy-makers.
Originality/value
Among the COVID-19 variables used in this study is a new feverish sentiment index, which has been constructed using principal component analysis. The importance of the feverish sentiment index is that it allows us to examine the impact of the aggregate level of fear in the economy on clean energy stocks.
Details
Keywords
Veli Yılancı, Mustafa Kırca, Şeri̇f Canbay and Muhlis Selman Sağlam
This study aims to test the unemployment hysteresis hypothesis for Nordic countries by considering age and gender differentials at various frequencies.
Abstract
Purpose
This study aims to test the unemployment hysteresis hypothesis for Nordic countries by considering age and gender differentials at various frequencies.
Design/methodology/approach
First, the authors test the linearity of the unemployment series and apply appropriate unit root tests based on the linearity test results. The authors use these tests for both original and wavelet-decomposed unemployment rates.
Findings
The authors' findings indicate that the results obtained from the original and decomposed series differ. While the authors find evidence of unemployment hysteresis in the six unemployment rates in the short run, they observe supportive results for hysteresis in the three unemployment rates in the long run.
Originality/value
The authors take into account different age and gender groups. Furthermore, the authors propose a testing strategy for unemployment hysteresis that considers the nonlinearity and structural breaks in unemployment rates. Finally, the authors determine whether the unemployment hysteresis is valid at various frequencies.