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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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    1. Sydney C. Ludvigson, 2004. "Consumer Confidence and Consumer Spending," Journal of Economic Perspectives, American Economic Association, vol. 18(2), pages 29-50, Spring.
    2. Jansen, W. Jos & Nahuis, Niek J., 2003. "The stock market and consumer confidence: European evidence," Economics Letters, Elsevier, vol. 79(1), pages 89-98, April.
    3. Acemoglu, Daron & Scott, Andrew, 1994. "Consumer Confidence and Rational Expectations: Are Agents' Beliefs Consistent with the Theory?," Economic Journal, Royal Economic Society, vol. 104(422), pages 1-19, January.
    4. Maria Ward Otoo, 1999. "Consumer sentiment and the stock market," Finance and Economics Discussion Series 1999-60, Board of Governors of the Federal Reserve System (U.S.).
    5. Mark Doms, 2004. "Consumer sentiment and the media," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue oct22.
    6. Karel Jan Alsem & Steven Brakman & Lex Hoogduin & Gerard Kuper, 2008. "The impact of newspapers on consumer confidence: does spin bias exist?," Applied Economics, Taylor & Francis Journals, vol. 40(5), pages 531-539.
    7. van Raaij, W. Fred, 1989. "Economic news, expectations and macro-economic behaviour," Journal of Economic Psychology, Elsevier, vol. 10(4), pages 473-493.
    8. Vuchelen, Jef, 2004. "Consumer sentiment and macroeconomic forecasts," Journal of Economic Psychology, Elsevier, vol. 25(4), pages 493-506, August.
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    Cited by:

    1. 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.
    2. Loes Aaldering & Rens Vliegenthart, 2016. "Political leaders and the media. Can we measure political leadership images in newspapers using computer-assisted content analysis?," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(5), pages 1871-1905, September.
    3. Garz, Marcel, 2013. "Unemployment expectations, excessive pessimism, and news coverage," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 156-168.
    4. repec:eee:regeco:v:68:y:2018:i:c:p:172-190 is not listed on IDEAS

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