Does pandemic uncertainty spur public health expenditures? Evidence from European Union economies

Abstract

This research intends to evaluate the asymmetric relationship between pandemic uncertainty and public health expenditures in selected European Union nations (Germany, France, Sweden, Belgium, Austria, Netherlands, Denmark, Spain, Finland, and Portugal). Earlier studies used panel data methodologies to get consistent results about the pandemic–health expenditures nexus, irrespective of the reality that numerous economies did not identify such a link independently. By contrast, the present research utilizes a unique technique, quantile‐on‐quantile, that explores time‐series dependency in every nation by offering worldwide yet country‐related insight into the linkage between the variables. Estimations reveal that pandemic uncertainty increases public health expenditures in most of the selected economies at specified quantiles of data. Additionally, the data indicate that the level of asymmetries among our variables varies by country, stressing the significance of policymakers paying special attention while executing policies concerning health expenditures and pandemic uncertainty.

Revealing the energy paradox: Assessing the asymmetric impact of pandemic uncertainty on consumption of renewable and nonrenewable energy

“…First, pandemics are global events with far-reaching economic and social consequences. The uncertainty they introduce can disrupt industries, supply chains, and consumer behavior, all of which have a direct impact on EC (Chang et al, 2023). Second, the unique and often unpredictable nature of pandemics creates a level of uncertainty that is distinct from other forms of economic or environmental uncertainty.…”

“…Over the past few decades, the world has witnessed six significant epidemic and pandemic outbreaks: SARS in 2003, Avian flu from 2003 to 2009, Swine flu in 2009-2010, Middle East Respiratory Syndrome (MERS) in 2012, Ebola from 2014 to 2016, and the Zika virus in 2015-2016 (Chang et al, 2023). However, it is widely asserted that the novel coronavirus (COVID-19) has generated greater controversy and perplexity compared to the aforementioned pandemics.…”

“…However, it is widely asserted that the novel coronavirus (COVID-19) has generated greater controversy and perplexity compared to the aforementioned pandemics. Pandemic uncertainty (PUN), in the context of our research, refers to the inherent unpredictability and complexity associated with global pandemics, particularly exemplified by the COVID-19 pandemic (Chang et al, 2023;Dong et al, 2021). PUN can manifest in various ways, including variations in energy consumption, shifts in energy source preferences, and risks to energy markets and investments.…”