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The influence of negative newspaper coverage on consumer confidence: The Dutch case

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  • Hollanders, David
  • Vliegenthart, Rens

Abstract

This paper studies the empirical relationship between the real economy, consumer confidence and economic news coverage in national newspapers for the Netherlands during the period 1990-2009. Media-attention for economic developments is associated with consumer confidence, with more negative news decreasing consumer confidence; this result holds after controlling for the real economy (stock-market). The relationship differs for different business-cycles. The effect is in particular stronger for the months following the beginning of the credit-crisis. 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.

Suggested Citation

  • Hollanders, David & Vliegenthart, Rens, 2011. "The influence of negative newspaper coverage on consumer confidence: The Dutch case," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 367-373, June.
    • Handle: RePEc:eee:joepsy:v:32:y:2011:i:3:p:367-373
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    References listed on IDEAS

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    Cited by:

    1. Lenka Mynaříková & Vít Pošta, 2023. "The Effect of Consumer Confidence and Subjective Well-being on Consumers’ Spending Behavior," Journal of Happiness Studies, Springer, vol. 24(2), pages 429-453, February.
    2. Rens Vliegenthart, 2014. "Moving up. Applying aggregate level time series analysis in the study of media coverage," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2427-2445, September.
    3. Burcu Ozgun & Tom Broekel, 2024. "Saved by the news? COVID-19 in German news and its relationship with regional mobility behaviour," Regional Studies, Taylor & Francis Journals, vol. 58(2), pages 365-380, February.
    4. Tufan Ekici, 2016. "Subjective Financial Distress in the Formation of Consumer Confidence: Evidence from Novel Household Data," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(2), pages 11-36.
    5. Garz, Marcel, 2013. "Unemployment expectations, excessive pessimism, and news coverage," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 156-168.
    6. Balcaen, Pieter & Buts, Caroline & Bois, Cind Du & Tkacheva, Olesya, 2023. "The effect of disinformation about COVID-19 on consumer confidence: Insights from a survey experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 102(C).
    7. Johannes Bloh & Tom Broekel & Burcu Özgun & Rolf Sternberg, 2020. "New(s) data for entrepreneurship research? An innovative approach to use Big Data on media coverage," Small Business Economics, Springer, vol. 55(3), pages 673-694, October.
    8. Plante, Michael, 2019. "OPEC in the news," Energy Economics, Elsevier, vol. 80(C), pages 163-172.
    9. Diamantis Petropoulos Petalas & Hein van Schie & Paul Hendriks Vettehen, 2017. "Forecasted economic change and the self-fulfilling prophecy in economic decision-making," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-18, March.
    10. Hassan F. Gholipour & Reza Tajaddini & Mohammad Reza Farzanegan, 2023. "Governments’ economic support for households during the COVID-19 pandemic and consumer confidence," Empirical Economics, Springer, vol. 65(3), pages 1253-1272, September.
    11. van Giesen, Roxanne I. & Pieters, Rik, 2019. "Climbing out of an economic crisis: A cycle of consumer sentiment and personal stress," Journal of Economic Psychology, Elsevier, vol. 70(C), pages 109-124.
    12. Garz, Marcel, 2018. "Effects of unemployment news on economic perceptions – Evidence from German Federal States," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 172-190.

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