Abstract
We perform a panel data analysis of 14 daily stock market indices during 01/21/2020 – 06/30/2020 to document a stock market index's negative responsiveness to Covid-19's spread variations. We find that a stock market index's elasticity estimate is −0.028 (p-value <0.01) for local cumulative confirmed cases. As a stock market index tends to move with Covid-19's local and non-local spreads, international efforts of containment are expected to pare stock market losses. Copyright © 2020 Informa UK Limited, trading as Taylor & Francis Group.
| Original language | English |
|---|---|
| Pages (from-to) | 1157-1161 |
| Journal | Applied Economics Letters |
| Volume | 28 |
| Issue number | 14 |
| Early online date | Aug 2020 |
| DOIs | |
| Publication status | Published - 2021 |
Citation
Cao, K. H., Li, Q., Liu, Y., & Woo, C.-K. (2021). Covid-19's adverse effects on a stock market index. Applied Economics Letters, 28(14), 1157-1161. doi: 10.1080/13504851.2020.1803481Keywords
- Covid-19
- Daily stock market index
- Market index elasticities
- Panel data analysis
