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Do Post-Corona European Economic Policies Lift Growth Prospects? Exploring an ML-Methodology

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  • Bodo Herzog

    (Economics Department, ESB Business School, Reutlingen University, 72762 Reutlingen, Germany
    Reutlingen Research Institute (RRI), 72762 Reutlingen, Germany
    Institute of Finance and Economics (IFE), Reutlingen University, 72762 Reutlingen, Germany)

Abstract

This article explores the determinants of people’s growth prospects in survey data as well as the impact of the European recovery fund to future growth. The focus is on the aftermath of the Corona pandemic, which is a natural limit to the sample size. We use Eurobarometer survey data and macroeconomic variables, such as GDP, unemployment, public deficit, inflation, bond yields, and fiscal spending data. We estimate a variety of panel regression models and develop a new simulation-regression methodology due to limitation of the sample size. We find the major determinant of people’s growth prospect is domestic GDP per capita, while European fiscal aid does not significantly matter. In addition, we exhibit with the simulation-regression method novel scientific insights, significant outcomes, and a policy conclusion alike.

Suggested Citation

  • Bodo Herzog, 2022. "Do Post-Corona European Economic Policies Lift Growth Prospects? Exploring an ML-Methodology," JRFM, MDPI, vol. 15(3), pages 1-13, March.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:3:p:120-:d:764161
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    References listed on IDEAS

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    9. Bodo Herzog, 2020. "Whither Coronabonds? The Past and Future of the EMU in the Coronavirus Pandemic," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(3), pages 155-159, May.
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    Cited by:

    1. Bodo Herzog & Stefanie Schnee, 2022. "Exploring a Dualism of Human Rationality: Experimental Study of a Cheating Contest Game," IJERPH, MDPI, vol. 19(13), pages 1-13, June.

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