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Economic uncertainty of pandemic and international airlines behaviour

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  • Ismail O Fasanya
  • Oluwasegun B Adekoya
  • Johnson A Oliyide

Abstract

This paper examines the role of uncertainty due to infectious diseases in predicting twenty International airline stocks within a nonparametric causality-in-quantiles framework. We observe that: First, the BDS test shows that nonlinearity is very important when examining the causal relationship between EMV-ID and airline stock returns and its volatility. Second, the nonparametric quantiles-based causality test shows that airline stocks predictability driven by pandemic-based uncertainty is stronger mostly around the lower quantiles, with weak evidences in middle and higher quantiles. Relevant policy implications can be drawn from these findings.

Suggested Citation

  • Ismail O Fasanya & Oluwasegun B Adekoya & Johnson A Oliyide, 2022. "Economic uncertainty of pandemic and international airlines behaviour," PLOS ONE, Public Library of Science, vol. 17(5), pages 1-13, May.
    • Handle: RePEc:plo:pone00:0266842
    DOI: 10.1371/journal.pone.0266842
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    References listed on IDEAS

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