A Snapshot of Where We Are. A Gross Domestic Product Analysis Related to Household Energy Price Index in the European Union

Abstract

This is one of the few articles that investigate the relation between GDP and electricity and gas evolution, especially given the events in the last three years. The evolution of GDP related to the Household Energy Price Index in the European Union (27 countries) is analyzed with the help of VAR model and the variance decomposition, historical variance decomposition and Granger Causality test under VAR which provide proof that HEPI for electricity has a more significant contribution to GDP than HEPI for gas.

Keywords

• gdp
• hepi
• covid-19
• war
• var model