Abstract

GIL-LEON, José Mauricio  and  SILVA-PINZON, Daniel Eduardo. Economic Policy Uncertainty Index (EPU) for Colombia, 2000-2017. Ens. Econ. [online]. 2019, vol.29, n.55, pp.37-56.  Epub Mar 14, 2020. ISSN 0121-117X.  https://doi.org/10.15446/ede.v29n55.76224.

In this paper, we intend to estimate an Economic Policy Uncertainty index -EPU- using the Baker, Bloom and Davis (2016) methodology, where words associated with uncertainty are identified. Therefore, taking information from the newspaper El Tiempo, the index is built on a monthly basis, finding that in moments of political and economic tension its value rises. In addition, it is clear that it is associated with other expectations indexes, such as consumer confidence, and with the same indices at an international level. Finally, through a VAR analysis, there was a negative response from investors and consumers to increases in uncertainty.

JEL: P16; Z28; C43; D80.

Keywords : uncertainty; trust; EPU; politics; Colombia.

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