Confidence and Unemployment in the European Union: A lesson from the 2004 enlargement
We use data for the monthly unemployment rate and consumer confidence indicator in the European Union to study whether there is a relationship between unemployment and confidence. Our estimation method is based on a fuzzy logic methodology with a Gaussian membership function. We find a stronger relationship between unemployment and confidence than it is apparent. We show in an ex-post prediction study that this relationship did not change, in a significant way, after the 2004 enlargement of the European Union. This fact constitutes a lesson for the post-2007 enlargement period. The link between unemployment and confidence has important policy implications given its relevance, in particular for the (latest call for a new start of the) Lisbon Strategy.
Volume (Year): (2007)
Issue (Month): 26 (December)
|Contact details of provider:|| Postal: |
Phone: + 351 239 790 500
Fax: + 351 239 40 35 11
Web page: http://notas-economicas.fe.uc.pt/index_en.htm
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John G. Matsusaka & Argia M. Sbordone, 1993.
"Consumer confidence and economic fluctuations,"
Working Paper Series, Macroeconomic Issues
93-13, Federal Reserve Bank of Chicago.
- Sydney C. Ludvigson, 2004. "Consumer Confidence and Consumer Spending," Journal of Economic Perspectives, American Economic Association, vol. 18(2), pages 29-50, Spring.
- James E. West & Bruce Linster, 2003. "The Evolution of Fuzzy Rules as Strategies in Two-Player Games," Southern Economic Journal, Southern Economic Association, vol. 69(3), pages 705-717, January.
- Mourougane, Annabelle & Roma, Moreno, 2002.
"Can confidence indicators be useful to predict short term real GDP growth?,"
Working Paper Series
0133, European Central Bank.
- Annabelle Mourougane & Moreno Roma, 2003. "Can confidence indicators be useful to predict short term real GDP growth?," Applied Economics Letters, Taylor & Francis Journals, vol. 10(8), pages 519-522.
- Antonio Caleiro, 2006. "How is confidence related to unemployment in Portugal?," Applied Economics Letters, Taylor & Francis Journals, vol. 13(13), pages 887-890.
When requesting a correction, please mention this item's handle: RePEc:gmf:journl:y:2007:i:26:p:15-26. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sara Santos)
If references are entirely missing, you can add them using this form.