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Political advertising and consumer sentiment: Evidence from U.S. presidential elections

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  • Couture, Cody
  • Owen, Ann L.

Abstract

We merge panel survey data on consumer sentiment with data on U.S. political advertisements run from 2013 to 2020 and estimate dynamic panel data models predicting the effect of positive, negative, and contrasting ads on several measures of consumer sentiment. We find that political ads during Presidential election cycles have a significant impact. In particular, a higher intensity of positive political ads with an economic theme makes consumers more optimistic about their own current and future financial positions and the future state of the economy. Our findings also suggest that political ads impact sentiment through an emotional appeal rather than by providing information to viewers about economic fundamentals.

Suggested Citation

  • Couture, Cody & Owen, Ann L., 2025. "Political advertising and consumer sentiment: Evidence from U.S. presidential elections," European Journal of Political Economy, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:poleco:v:86:y:2025:i:c:s0176268025000072
    DOI: 10.1016/j.ejpoleco.2025.102647
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    More about this item

    Keywords

    Consumer sentiment; Political advertising; Inflation expectations;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E70 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - General

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