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Explaining consumer confidence in Portugal

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  • Ramalho, Esmeralda A.
  • Caleiro, António
  • Dionfsio, Andreia

Abstract

Confidence in general and consumer confidence in particular are subject to increasing interest by many agents, including central banks and governments at the national level, and supranational entities, such as the European Commission of the European Union. Although the academic community shares this interest, the extant literature focuses on the use of consumer confidence to predict variables that describe aspects of the business cycle, such as consumption. Unlike this body of work, the objective of our paper is to analyse the evolution of consumer confidence in Portugal and examine the factors that underpin its formation. Using monthly and quarterly data over the period January 1987 to December 2009, we find that consumer confidence in Portugal is essentially explained by the economic performance, the entrance in the Euro zone and electoral circumstances.

Suggested Citation

  • Ramalho, Esmeralda A. & Caleiro, António & Dionfsio, Andreia, 2011. "Explaining consumer confidence in Portugal," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 25-32, February.
  • Handle: RePEc:eee:joepsy:v:32:y:2011:i:1:p:25-32
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    References listed on IDEAS

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    Cited by:

    1. Paradiso, Antonio & Kumar, Saten & Margani, Patrizia, 2014. "Are Italian consumer confidence adjustments asymmetric? A macroeconomic and psychological motives approach," Journal of Economic Psychology, Elsevier, vol. 43(C), pages 48-63.
    2. Armand Faganel, 2011. "Recognized Values and Consumption Patterns of Post-Crisis Consumers," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 9(2), pages 151-170.
    3. Piotr Białowolski, 2015. "Concepts of Confidence in Tendency Survey Research: An Assessment with Multi-group Confirmatory Factor Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(1), pages 281-302, August.
    4. Hatice Gokce Karasoy & Caglar Yunculer, 2015. "The Explanatory Power and the Forecast Performance of Consumer Confidence Indices for Private Consumption Growth in Turkey," Working Papers 1519, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    5. repec:eee:ecanpo:v:55:y:2017:i:c:p:35-46 is not listed on IDEAS

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