Investigating the effect of economic policy uncertainty and tourism: evidence from wavelet approaches

ABSTRACT

This paper re-examines the relationship between European economic policy uncertainty and tourism activities in Portugal, Ireland, Italy, Greece and Spain between 1995 and 2020. The new three-dimensional wavelet transform context structures were used by the researchers to enable the decomposition of time-series at various time frequencies. The researchers develop unique three-dimensional wavelet transform context structures that allow time-series decomposition at multiple time frequencies. In contrast, the study findings suggest that the government should boost tourism demand and encourage the growth of the industry’s supply.

KEYWORDS:

• Tourism activities
• EPU
• EEPU
• three-dimensional wavelet
• time and frequency domains

Disclosure statement

No potential conflict of interest was reported by the author(s).