The Economic Policy Uncertainty (EPU) index was introduced by Baker, Bloom, and Davisin 2016. It is an index that quantifies economic uncertainty with regard to the efficiency of the economic policies applied. The EPU index is based on textual analysis. More specifically, its construction is based on the number of newspaper articles that include at least one word related to each of the following 3 categories: Economy (E), Policy (P), και Uncertainty (U). So far, the EPU is constructed for almost 30 countries (11 of them in Europe). The Economics Research Centre of the University of Cyprus constructs the corresponding EPU index for Cyprus and analyses the effects of economic uncertainty on the Cypriot economy.
