Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period

This paper analyses the effects of the Chinese Economic Policy Uncertainty (CEPU) index on the daily returns of Bitcoin for the period from December 31, 2019 to May 20, 2020. Utilizing the Ordinary Least Squares (OLS) and the Generalized Quantile Regression (GQR) estimation techniques, the paper ill...

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Autores principales: Chen, Tiejun, Lau, Chi Keung Marco, Cheema, Sadaf, Koo, Chun Kwong
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2021
Materias:
Public Health
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7991402/
https://www.ncbi.nlm.nih.gov/pubmed/33777889
http://dx.doi.org/10.3389/fpubh.2021.651051
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author Chen, Tiejun
Lau, Chi Keung Marco
Cheema, Sadaf
Koo, Chun Kwong
author_facet Chen, Tiejun
Lau, Chi Keung Marco
Cheema, Sadaf
Koo, Chun Kwong
author_sort Chen, Tiejun
collection PubMed
description This paper analyses the effects of the Chinese Economic Policy Uncertainty (CEPU) index on the daily returns of Bitcoin for the period from December 31, 2019 to May 20, 2020. Utilizing the Ordinary Least Squares (OLS) and the Generalized Quantile Regression (GQR) estimation techniques, the paper illustrates that the current CEPU has a positive impact on the returns of Bitcoin. However, the positive impact is statistically significant only at the higher quantiles of the current CEPU. It is concluded that Bitcoin can be used in hedging against policy uncertainties in China since significant rises in uncertainty leads to a higher return in Bitcoin. JEL Codes: G32; G15; C22
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spelling pubmed-79914022021-03-26 Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period Chen, Tiejun Lau, Chi Keung Marco Cheema, Sadaf Koo, Chun Kwong Front Public Health Public Health This paper analyses the effects of the Chinese Economic Policy Uncertainty (CEPU) index on the daily returns of Bitcoin for the period from December 31, 2019 to May 20, 2020. Utilizing the Ordinary Least Squares (OLS) and the Generalized Quantile Regression (GQR) estimation techniques, the paper illustrates that the current CEPU has a positive impact on the returns of Bitcoin. However, the positive impact is statistically significant only at the higher quantiles of the current CEPU. It is concluded that Bitcoin can be used in hedging against policy uncertainties in China since significant rises in uncertainty leads to a higher return in Bitcoin. JEL Codes: G32; G15; C22 Frontiers Media S.A. 2021-03-11 /pmc/articles/PMC7991402/ /pubmed/33777889 http://dx.doi.org/10.3389/fpubh.2021.651051 Text en Copyright © 2021 Chen, Lau, Cheema and Koo. http://creativecommons.org/licenses/by/4.0/ This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Public Health
Chen, Tiejun
Lau, Chi Keung Marco
Cheema, Sadaf
Koo, Chun Kwong
Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period
title Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period
title_full Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period
title_fullStr Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period
title_full_unstemmed Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period
title_short Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period
title_sort economic policy uncertainty in china and bitcoin returns: evidence from the covid-19 period
topic Public Health
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7991402/
https://www.ncbi.nlm.nih.gov/pubmed/33777889
http://dx.doi.org/10.3389/fpubh.2021.651051
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