Do Oil Price Shocks and COVID-19 Lead to Policy Uncertainty?

Nagmi Moftah Aimer (Department of Economics, Higher Institute of Marine Sciences Techniques Sabratha, Libya)

Article ID: 4843


This study examines the asymmetric effects of the structural oil price shocks and COVID-19 pandemic on four uncertainty indexes. The author used the SVAR approach for the period 31-Dec-2019 to 28-Jun-2020. The results indicate that the effects are asymmetric of oil price shocks. The author also finds that COVID-19 shocks lead to positive responses to the economic policy uncertainty index. In addition, oil prices (their shocks) have a negative impact on the four indicators of uncertainty. Consequently, governments should actively take effective measures to prevent crude oil prices from shocking and maintain stable economic policies.


Oil price shocks; Uncertainty; COVID-19 pandemic; SVAR; IRFs

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