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COVID-19 and volatility in the tourism sector's stocks

Author

Listed:
  • Rupika Khanna

    (Indian Institute of Management Rohtak)

  • Chandan Sharma

    (Indian Institute of Management Lucknow)

Abstract

This study examines effects of COVID-19 on volatility of hospitality sector stocks in United States. Using a daily dataset, our analysis offers a comparative picture of the sub-sectors, viz. airline, gambling, hotel, restaurant and travel. We use three crucial measures of intensity of pandemic and related stringencies in our analysis. For estimation, we utilize GARCH based models and measured symmetric as well as asymmetric effects. Our findings show for a sizable effect of the COVID-19 outbreak on the volatility of hospitality stocks. Specifically, our results demonstrate that highest level of uncertainty is observed in travel followed restaurant sector.

Suggested Citation

  • Rupika Khanna & Chandan Sharma, 2022. "COVID-19 and volatility in the tourism sector's stocks," Economics Bulletin, AccessEcon, vol. 42(4), pages 2184-2192.
    • Handle: RePEc:ebl:ecbull:eb-21-00963
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    References listed on IDEAS

    as
    1. Nelson, Daniel B, 1991. "Conditional Heteroskedasticity in Asset Returns: A New Approach," Econometrica, Econometric Society, vol. 59(2), pages 347-370, March.
    2. Chandan Sharma & Rupika Khanna, 2022. "Assessing asymmetric determinants of commodity-level exports: the role of policy responses to the COVID-19 pandemic," Applied Economics, Taylor & Francis Journals, vol. 54(45), pages 5176-5189, September.
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    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • G1 - Financial Economics - - General Financial Markets

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