Working Paper: Uncertainty and the real economy: Evidence from Denmark

Working Paper - November 2020 - No. 165

Authors Bess, Mikkel; Grenestam, Erik; Tang-Andersen Martinello, Alessandro; Pedersen, Jesper
Subject Economic activity and employment; Current economic and monetary trends; Statistical method
Type Working paper
Year 2020
Published 24 November 2020
Abstract icon The language in news articles can be used to measure the perceived level of economic uncertainty. In a model of the Danish economy, increased uncertainty contributed significantly to the drop in investments during the Sovereign Debt Crisis. So far, uncertainty has had a smaller impact on investments during the COVID-19 pandemic.