Did weekly economic index and volatility index impact US food sales during the first year of the pandemic?

Narasingha Das; Partha Gangopadhyay

doi:10.1186/s40854-023-00460-y

Did weekly economic index and volatility index impact US food sales during the first year of the pandemic?

Narasingha Das
, Partha Gangopadhyay

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

We explore the impacts of economic and financial dislocations caused by COVID-19 pandemic shocks on food sales in the United States from January 2020 to January 2021. We use the US weekly economic index (WEI) to measure economic dislocations and the Chicago Board Options Exchange volatility index (VIX) to capture the broader stock market dislocations. We validate the NARDL model by testing a battery of models using the autoregressive distributed lags (ARDL) methodology (ARDL, NARDL, and QARDL specifications). Our study postulates that an increase in WEI has a significant negative long-term effect on food sales, whereas a decrease in WEI has no statistically significant (long-run) effect. Thus, policy responses that ignore asymmetric effects and hidden cointegration may fail to promote food security during pandemics.

Original language	English
Article number	57
Number of pages	23
Journal	Financial Innovation
Volume	9
Issue number	1
DOIs	https://doi.org/10.1186/s40854-023-00460-y
Publication status	Published - Dec 2023

Bibliographical note

Publisher Copyright:
© 2023, The Author(s).

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Â© The Author(s) 2023. Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 2 Zero Hunger

Access to Document

10.1186/s40854-023-00460-y

Cite this

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title = "Did weekly economic index and volatility index impact US food sales during the first year of the pandemic?",

abstract = "We explore the impacts of economic and financial dislocations caused by COVID-19 pandemic shocks on food sales in the United States from January 2020 to January 2021. We use the US weekly economic index (WEI) to measure economic dislocations and the Chicago Board Options Exchange volatility index (VIX) to capture the broader stock market dislocations. We validate the NARDL model by testing a battery of models using the autoregressive distributed lags (ARDL) methodology (ARDL, NARDL, and QARDL specifications). Our study postulates that an increase in WEI has a significant negative long-term effect on food sales, whereas a decrease in WEI has no statistically significant (long-run) effect. Thus, policy responses that ignore asymmetric effects and hidden cointegration may fail to promote food security during pandemics.",

author = "Narasingha Das and Partha Gangopadhyay",

note = "Publisher Copyright: {\textcopyright} 2023, The Author(s).",

year = "2023",

month = dec,

doi = "10.1186/s40854-023-00460-y",

language = "English",

volume = "9",

journal = "Financial Innovation",

issn = "2199-4730",