Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?

<p>This paper examines the determinants of the dynamic connectedness between sovereign bond yields in a sample of G7 countries. In addition to the common macroeconomic factors, we focus on the impact of Economic Policy Uncertainty (EPU) on the dynamic connectedness patterns between bond yields...

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Main Author: Noureddine benlagha (8639769) (author)
Other Authors: Wael Hemrit (14156910) (author)
Published: 2022
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author Noureddine benlagha (8639769)
author2 Wael Hemrit (14156910)
author2_role author
author_facet Noureddine benlagha (8639769)
Wael Hemrit (14156910)
author_role author
dc.creator.none.fl_str_mv Noureddine benlagha (8639769)
Wael Hemrit (14156910)
dc.date.none.fl_str_mv 2022-11-22T21:22:45Z
dc.identifier.none.fl_str_mv 10.1007/s12197-021-09554-8
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Does_economic_policy_uncertainty_matter_to_explain_connectedness_within_the_international_sovereign_bond_yields_/21601359
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Economics
Applied economics
Sovereign
Bonds
G7 Countries
Economic Policy Uncertainty
Connectedness
dc.title.none.fl_str_mv Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p>This paper examines the determinants of the dynamic connectedness between sovereign bond yields in a sample of G7 countries. In addition to the common macroeconomic factors, we focus on the impact of Economic Policy Uncertainty (EPU) on the dynamic connectedness patterns between bond yields. To this end, we first examine the full-sample connectedness among the seven bond yields and examine various features of connectedness using a measure recently proposed by Diebold and Yilmaz (Int J Forecast 28(1):57-66, 2012). To examine the determinants of the dynamic connectedness, we use the panel data model to consider the dynamic net connectedness between the considered bond yields as the endogenous variable. Overall, being the transmitter or recipient of spillovers appears to have independent and different influences depending on each of the two types of sovereign bond yields. Also, the findings support the idea that EPU can create an environment likely to exacerbate the transmission of spillover shocks between two-year sovereign bond yields. Conversely, on the whole, EPU does not appear to affect the connectedness of thirty-year sovereign bond yields in various bond markets. The findings also reveal the significant impacts of real output on how shocks across countries manifest in different ways.</p><h2>Other Information</h2> <p> Published in: Journal of Economics and Finance<br> License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="http://dx.doi.org/10.1007/s12197-021-09554-8" target="_blank">http://dx.doi.org/10.1007/s12197-021-09554-8</a></p>
eu_rights_str_mv openAccess
id Manara2_4ab9a5d175f52076137ea019e9064a63
identifier_str_mv 10.1007/s12197-021-09554-8
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/21601359
publishDate 2022
repository.mail.fl_str_mv
repository.name.fl_str_mv
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rights_invalid_str_mv CC BY 4.0
spelling Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?Noureddine benlagha (8639769)Wael Hemrit (14156910)Commerce, management, tourism and servicesBanking, finance and investmentEconomicsApplied economicsSovereignBondsG7 CountriesEconomic Policy UncertaintyConnectedness<p>This paper examines the determinants of the dynamic connectedness between sovereign bond yields in a sample of G7 countries. In addition to the common macroeconomic factors, we focus on the impact of Economic Policy Uncertainty (EPU) on the dynamic connectedness patterns between bond yields. To this end, we first examine the full-sample connectedness among the seven bond yields and examine various features of connectedness using a measure recently proposed by Diebold and Yilmaz (Int J Forecast 28(1):57-66, 2012). To examine the determinants of the dynamic connectedness, we use the panel data model to consider the dynamic net connectedness between the considered bond yields as the endogenous variable. Overall, being the transmitter or recipient of spillovers appears to have independent and different influences depending on each of the two types of sovereign bond yields. Also, the findings support the idea that EPU can create an environment likely to exacerbate the transmission of spillover shocks between two-year sovereign bond yields. Conversely, on the whole, EPU does not appear to affect the connectedness of thirty-year sovereign bond yields in various bond markets. The findings also reveal the significant impacts of real output on how shocks across countries manifest in different ways.</p><h2>Other Information</h2> <p> Published in: Journal of Economics and Finance<br> License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="http://dx.doi.org/10.1007/s12197-021-09554-8" target="_blank">http://dx.doi.org/10.1007/s12197-021-09554-8</a></p>2022-11-22T21:22:45ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1007/s12197-021-09554-8https://figshare.com/articles/journal_contribution/Does_economic_policy_uncertainty_matter_to_explain_connectedness_within_the_international_sovereign_bond_yields_/21601359CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/216013592022-11-22T21:22:45Z
spellingShingle Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?
Noureddine benlagha (8639769)
Commerce, management, tourism and services
Banking, finance and investment
Economics
Applied economics
Sovereign
Bonds
G7 Countries
Economic Policy Uncertainty
Connectedness
status_str publishedVersion
title Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?
title_full Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?
title_fullStr Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?
title_full_unstemmed Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?
title_short Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?
title_sort Does economic policy uncertainty matter to explain connectedness within the international sovereign bond yields?
topic Commerce, management, tourism and services
Banking, finance and investment
Economics
Applied economics
Sovereign
Bonds
G7 Countries
Economic Policy Uncertainty
Connectedness