Covid-19 Pandemic Lockdown vs. Business Cycle Clock Registration of New Passenger Cars in European Countries

Tadeusz Kufel
European Research Studies Journal, Volume XXIV, Special Issue 1, 875-890, 2021
DOI: 10.35808/ersj/2078


Purpose: The aim of this article is to evaluate the impact of the lockdown caused by the Covid-19 pandemic on the economic situation measured by the number of new passenger cars registered in selected European countries. Design/Methodology/Approach: The assessment of economic changes was conducted using a business cycle clock (BCC) using the number of newly registered passenger cars. Use working day and seasonally adjusted - Car registration, a new passenger car monthly series, was estimated with a Hodrick-Prescott filter. Findings: The lockdown caused by the Covid-19 pandemic had a negative impact on the economy measured by newly registered cars. Practical Implications: The varying effects of the lockdown can be evaluated with a business cycle clock. Originality/Value: The study was based on monthly data up to October 2020 and showed the high usefulness of BCC results.

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