We study the impact of economic policy uncertainty on the probability and duration of economic recessions in 10 major European Union countries over the period 1987Q2-2021Q1. We find that economic policy uncertainty results in not only a higher probability of economic recessions but also longer...

Motivated by the unprecedented high levels of recent economic policy uncertainty in Europe and the globe, this paper examines the relationship between economic policy uncertainty and bank stability, as well as the conditioning effects of bank regulation and supervision on this relationship....

This paper examines the relationship between wholesale funding and bank stability and the conditioning effects of economic policy uncertainty. Based on a sample of 1815 commercial banks in 27 countries over the period 2005-2020, we provide evidence of a nonlinear relationship between wholesale...

This paper examines the impact of policy uncertainty on corporate dividend payouts in a sample of 20,856 US firms over the period 1991-2020. In line with the agency theory, we find evidence that firms pay higher dividends to mitigate agency problems during periods of high policy uncertainty. The...