Table 6

Two-stage least squares regression results with the instrumental variable for geopolitical uncertainty

Panel A: Gold
(1)(2)(3)
S&P 500 indexFirstSecondFirstSecondFirstSecond
Intercept353.19 (13.71)97.32 (1.71)267.99 (14.12)283.92 (7.96)109.83 (35.63)325.48 (4.85)
GPR0.03** (2.45) 0.05*** (4.40) 0.02** (2.01) 
Predicted_gold 0.69*** (2.70) –0.36** (–2.24) –2.51*** (–4.09)
Panel B: Crude oil
(4)(5)(6)
S&P 500 indexFirstSecondFirstSecondFirstSecond
Intercept319.93 (6.58)214.0 (5.13)237.63 (5.00)243.59 (9.02)–31.39 (–6.96)31.62 (5.89)
GPR0.12*** (7.14) 0.12*** (6.00) 0.10*** (4.36) 
Predicted_crude oil 0.17* (1.81) –0.09 (–1.41) –0.59*** (–4.09)

Note(s): *** indicates significance at 1% level; ** indicates significance at 5% level; * indicates significance at 10% level. Variables with moderate-to-severe multicollinearity (VIF >10) are avoided in each model. Controls and Fixed Effects are included in each model, but not reported. T-statistics values are in parentheses. The sample period is the weekly observations from Jan’2020 to Mar’2022

or Create an Account

Close Modal
Close Modal