The Influence of Negative Newspaper Coverage on Consumer Confidence: The Dutch Case
AbstractThis paper studies the empirical relationship between the real economy, consumer confidence and economic news coverage in national newspapers for the Netherlands during the period 1990-2008. Media-attention for economic developments Granger-causes consumer confidence, with more negative news decreasing consumer confidence; this result holds when controlling for the real economy (stock-market). This suggests that in line with many popular concerns negative news is among factors influencing the hardness of the landing of the current credit-crisis, whereas positive news might have been a contributing factor in the build-up of asset- and housing bubbles.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2009-55.
Date of creation: 2009
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Web page: http://center.uvt.nl
Consumer Confidence; Media; VAR-analysis.;
Find related papers by JEL classification:
- E00 - Macroeconomics and Monetary Economics - - General - - - General
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
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