Efecto de la incertidumbre de política económica en los mercados bursátiles europeos

Abstract

This study assesses the effect of Economic Policy Uncertainty (IPE) on the return, volatility and liquidity of European stock markets. Applying panel data on a sample of European countries for the period 09-2011 to 07-2020, it is found that IPE reduces returns and increases volatility in European stock markets, not finding conclusive results regarding liquidity. These results demonstrate the importance and need for greater control by economic policy makers over the transparency and stability of their decisions.