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Seasonality and Consumer Confidence

Author

Listed:
  • Balazs Zelity

    (Department of Economics, Wesleyan University)

Abstract

This research empirically investigates whether consumer confidence is affected by seasonal weather fluctuations. Cross-country panel regressions are run with two different data sets. It is found that both solar elevation and sunlight duration positively affect consumer confidence. The presence of country and year-by-quarter fixed effects as well as controls for the business cycle help rule out alternative explanations. A one standard deviation increase in solar elevation or sunlight duration is associated with a 0.02-0.04 SD increase in consumer confidence.

Suggested Citation

  • Balazs Zelity, 2022. "Seasonality and Consumer Confidence," Wesleyan Economics Working Papers 2022-001, Wesleyan University, Department of Economics.
    • Handle: RePEc:wes:weswpa:2022-001
    as

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    File URL: http://repec.wesleyan.edu/pdf/bzelity/2022001_zelity.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    consumer confidence; seasonality; seasonal affective disorder; behavioural bias;
    All these keywords.

    JEL classification:

    • E03 - Macroeconomics and Monetary Economics - - General - - - Behavioral Macroeconomics
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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